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How does port efficiency affect maritime transport costs and trade ? evidence from Indian and western Pacific Ocean countries

Author

Listed:
  • Herrera Dappe,Matias
  • Jooste,Charl
  • Suarez Aleman,Ancor

Abstract

Would improvements in port performance increase trade in countries on the Indian and Western Pacific Oceans? Previous studies attempted to answer this question using ad hoc measures of port efficiency that do not control for the actual use of port assets or measures that can be very noisy. To avoid these problems, this paper builds a measure of economic efficiency based on the use of port inputs to deliver port output. Using data envelop analysis, it ranks countries on the Indian and Western Pacific Oceans in terms of their port efficiency, and assesses the effect of increased efficiency. It finds that becoming as efficient as the country with the most efficient port sector would reduce their average maritime transport costs by up to 14 percent and increase their exports by up to 2.2 percent.

Suggested Citation

  • Herrera Dappe,Matias & Jooste,Charl & Suarez Aleman,Ancor, 2017. "How does port efficiency affect maritime transport costs and trade ? evidence from Indian and western Pacific Ocean countries," Policy Research Working Paper Series 8204, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8204
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    Citations

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    Cited by:

    1. Qiao Lei & Chris Bachmann, 2020. "Assessing the role of port efficiency as a determinant of maritime transport costs: evidence from Canada," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 562-584, December.
    2. Christian Darko & Giovanni Occhiali & Enrico Vanino, 2021. "The Chinese are Here: Import Penetration and Firm Productivity in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 57(12), pages 2112-2135, December.
    3. Ardelean,Adina Teodora & Lugovskyy,Volodymyr & Skiba,Alexandre & Terner,David Michael, 2022. "Fathoming Shipping Costs : An Exploration of Recent Literature, Data, and Patterns," Policy Research Working Paper Series 9992, The World Bank.
    4. Darko, Christian K. & Occhiali, Giovanni & Vanino, Enrico, 2018. "The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa," ETA: Economic Theory and Applications 273142, Fondazione Eni Enrico Mattei (FEEM).

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