Port Efficiency and International T

Port Efficiency and International Trade :
Port Efficiency as a Determinant of Maritime Transport Costs



Abstract
This paper examines the determinants of waterborne transport costs, with particular emphasis on the efficiency at port level. Its main contribution is (1) to generate statistically quantifiable measures of port efficiency from a survey of Latin American common user ports, and (2) to estimate a model of waterborne transport costs, including the previously generated port efficiency measures as explanatory variables. In order to incorporate different port efficiency measures from the survey, we use principal component analysis (PCA). Our estimations show that the specified variables in the model explain a great proportion of the change in waterborne transport costs. With regard to port efficiency, the result is especially important for one of the port efficiency measures obtained through PCA with an estimated elasticity equivalent to that of distance. Other explanatory variables which show to be statistically significant are the monthly liner service availability, distance, and the goods' value per ton. The conclusions are relevant for policy makers as they show and quantify that port efficiency is a relevant determinant of a country's competitiveness – and in this respect, there still exist big differences among Latin American countries. Unlike most other relevant variables, port efficiency can be influenced by public policies.
Keywords: Port efficiency, multivariate analysis, freight costs, Latin America







INTRODUCTION: MARITIME TRANSPORT COSTS AND INTERNATIONAL TRADE
The paper is organised as follows: This chapter contains a general introduction that looks at the relation between transport costs and international trade. In the second chapter, principal components are computed from a Latin American Port survey. The third chapter describes the model and the estimation results, followed by the conclusion and interpretation of results.

The impact of the costs of transport on foreign trade and economic development
Improvements in international transport services are one of the main features of economic globalisation. Together with progress in telematics, standardisation and trade liberalisation, faster, more reliable and cheaper transport services are contributing to the integration of production processes at the global level.
International freight has an impact on trade similar to customs tariffs or the exchange rate: a reduction in the costs of transport directly stimulates exports and imports, just as an increase in the exchange rate (the rate at which the national currency may be exchanged against another) makes exports more competitive, and a reduction in national customs tariffs lowers the costs of imports. Spurred by trade liberalisation, customs tariffs have dropped to levels where in many cases any additional reduction would now no longer have a significant impact. It is perhaps for that reason that new and interesting studies have been published in recent years analysing the impact of transport costs on trade patterns and globalised production (see for example Kumar and Hoffmann (2002) for a literature overview).

The impact on tradeThe price of the vast majority of traded goods is exogenous for developing countries. If the shipping of imports becomes more expensive, higher prices ensue as a result of the increased cost of imported goods; in the case of intermediate and capital goods, this also increases the costs of local production. If exports become dearer to ship, the result is a drop in earnings for the exporting country or simply the loss of a market, depending on the elasticity of demand and the availability of substitutes. Econometric estimates suggest that the doubling of an individual country's transport costs leads to a drop in its trade of 80% or even more (Hummels, 2000; Limao and Venables, 2001).
The impact on economic growth Empirical studies have concluded that greater transport costs lead to lower levels of foreign investment, a lower savings ratio, reduced exports of services, reduced access to technology and knowledge, and a decline in employment. It is estimated that a doubling of transport costs leads to a drop in the rate of economic growth of more than half a percentage point (Radelet and Sachs, 1998). This impact may appear low, but it should be noted that lower growth over the long-term results in sizeable variation in per capita income. Geographical variables related to transport costs may account for 70% of the statistical variation in per capita income between countries (Redding and Venables, 2001).
The impact of transport costs is increasingOn average, 8.6% of the value of merchandise imported by the countries of Latin America and the Caribbean is spent on freight and insurance costs relating to their international carriage; this figure is 40% more than the world average. Major differences persist within the region, with the Caribbean economies recording the highest indices.
Compared to tariffs, transport costs have been increasing in relative importance for export competitiveness. For example, on average, exports from Latin America and the Caribbean to the United States attract customs duties of 1.86%, compared to the 4.45% share of their value accounted for by international carriage (Micco and Pérez, 2001).

Increasing component of GDP The freight and insurance costs of international transport are also tending to increase as a percentage of Gross Domestic Product (GDP). The reason for this is that, both globally and in Latin America and the Caribbean, trade is growing at a faster pace than GDP. In the 1990s, the rate of growth of world exports was more than double that of GDP, and was triple in Latin America and the Caribbean (ECLAC, 2002). Therefore, although transport costs have fallen as a percentage of the value of trade, trade itself has expanded, and with it international freight's share of GDP.
Increasing component of logistics costs Spending on transport is also increasing because improved quality of service is sought, especially greater dependability and 'just in time' delivery. As a result, the inventory component within the overall costs of logistics declines, while the transport component rises. In the case of the United States, for instance, it is estimated that during the 1990s spending on transport rose from 9.5% to 10% of GDP, while spending on inventories slipped from 4.3% to 3.5% (Gorman, 2002; includes domestic transport).
Increasing incidence in the value of traded goodsLastly, even as a percentage of the value of imported goods, the incidence of international transport costs is increasing. Whereas in the past exports consisted primarily of raw materials and manufactured goods, today trade is increasingly in intermediate goods. For example, the import price of a Mexican-made car imported into Peru includes not only the costs of transporting the vehicle from Veracruz, Mexico, to Callao, Peru, but also the transport costs of importing a number of inputs sourced from a wide range of countries that supply Mexico (Hoffmann, 2002).

Transport costs: Causes and effects
Analysis and reduction of transport costs is a quite complex issue. Demand for transport services is dependent on trade, which is influenced by a number of variables that also have an impact on the costs of transport.
Supply versus demandThe cost of transport is essentially the price of a service, and is determined by the supply and demand for that service. Lower transport costs reduce the final price, increasing trade. However, an expanding volume of trade also reduces the unit costs of transport, allowing for economies of scale and greater differentiation between different services in terms of speed, frequency, reliability and security.
Quality versus costsAs with goods, the production of transport services is also subject to the impact of technological advances. With the use of new information and communication technologies, improvements in infrastructure, and by taking advantage of the growing rate of containerisation, today the same freight and insurance per tonne of cargo can buy a quicker, more reliable service with less variation in delivery time than a decade ago.
In addition, it is worth noting that greater commercial demands as regards speed have at the same time given rise to an increase in the share of air transport as compared to maritime transport, and may entail an increase in the average cost of international transport. The fact that the average cost of freight and insurance rose worldwide in the 1990s. should not be interpreted as a worsening of the international transport system, but rather as a reflection of greater use of air transport and improvements in other transport services. Equivalently, when interpreting the regression results presented later in this paper, improved port efficiency does not necessarily imply lower transport costs, as the user may be required to pay for the improved service.
Direct impacts versus indirect impactsThe distance separating countries impacts on trade between them in different ways. The main models used to explain international trade flows can be described as 'gravitational': countries trade with one another depending on their patterns of production, income, and whether they belong to economic blocs, with the distance between them also having some bearing. That gives an advantage to countries located in the 'center of gravity', and hence the name of the model. There is an assumption of a close link between distance and transport costs, which would explain why countries closer to one another trade more than with countries further away. In practice, distance may also have a bearing on other characteristics of countries, which leads them to trade more. For instance, countries located nearer to one another tend to have more similar histories, cultures and languages.
Most importantly, geographical closeness provides scope fo

ผลลัพธ์ (อังกฤษ) 2:

Port Efficiency and International Trade:
Port Efficiency as a determinant of Maritime Transport Costs Abstract This Paper examines the determinants of waterborne Transport costs, with particular emphasis on the efficiency level at Port. Its main contribution is (1) to generate statistically quantifiable measures of port efficiency from a survey of Latin American common user ports, and (2) to estimate a model of waterborne transport costs, including the previously generated port efficiency measures as explanatory variables. In order to incorporate different port efficiency measures from the survey, we use principal component analysis (PCA). Our estimations show that the specified variables in the model explain a great proportion of the change in waterborne transport costs. With regard to port efficiency, the result is especially important for one of the port efficiency measures obtained through PCA with an estimated elasticity equivalent to that of distance. Other explanatory variables which show to be statistically significant are the monthly liner service availability, distance, and the goods' value per ton. The conclusions are relevant for policy makers as they show and quantify that port efficiency is a relevant determinant of a country's competitiveness - and in this respect, there still exist big differences among Latin American countries. Unlike Most Other relevant variables, Port efficiency Can be influenced by Public Policies. Keywords: Port efficiency, multivariate Analysis, Freight costs, Latin America INTRODUCTION: MARITIME TRANSPORT costs AND INTERNATIONAL TRADE The Paper is organized as follows: This Chapter contains a general Introduction that. looks at the relation between transport costs and international trade. In the second chapter, principal components are computed from a Latin American Port survey. The third Chapter describes the Model and the estimation results, followed by the conclusion and Interpretation of results. The Impact of Transport on the costs of Economic Development and Trade Second Improvements in International Transport Services are one of the Main features of Economic globalization. Together with Progress in telematics, standardization and Trade liberalization, Faster, more Reliable and Cheaper Transport Services are Contributing to the integration of Production processes at the Global level. International Freight has an Impact on Trade similar to Customs tariffs or the Exchange rate: a Reduction. in the costs of transport directly stimulates exports and imports, just as an increase in the exchange rate (the rate at which the national currency may be exchanged against another) makes exports more competitive, and a reduction in national customs tariffs lowers the costs of imports. . Spurred by trade liberalisation, customs tariffs have dropped to levels where in many cases any additional reduction would now no longer have a significant impact. It is perhaps for that Reason that New and Interesting Studies have been Published in recent years Analysing the Impact of Transport costs on Trade Patterns and globalized Production (See for example Kumar and Hoffmann (2002) for a literature overview). The Impact on TradeThe Price. of the vast majority of traded goods is exogenous for developing countries. If the shipping of imports becomes more expensive, higher prices ensue as a result of the increased cost of imported goods; in the case of intermediate and capital goods, this also increases the costs of local production. If exports become dearer to ship, the result is a drop in earnings for the exporting country or simply the loss of a market, depending on the elasticity of demand and the availability of substitutes. Econometric estimates suggest that the Doubling of an individual Country's Transport costs Leads to a Drop in its Trade of 80% or even more (Hummels, 2 thousandth; Limao and Venables, in 2001). The Impact on Economic growth Empirical Studies have concluded that Greater Transport costs. lead to lower levels of foreign investment, a lower savings ratio, reduced exports of services, reduced access to technology and knowledge, and a decline in employment. It is estimated that a doubling of transport costs leads to a drop in the rate of economic growth of more than half a percentage point (Radelet and Sachs, 1998). This impact may appear low, but it should be noted that lower growth over the long-term results in sizeable variation in per capita income. Geographical variables related to Transport costs May Account for 70% of the Statistical variation in per capita income between countries (Redding and Venables, 2,001). The Impact of Transport costs is IncreasingOn average, 8.6% of the Value of merchandise imported by the countries of. Latin America and the Caribbean is spent on freight and insurance costs relating to their international carriage; this figure is 40% more than the world average. Major differences PERSIST Within the Region, the Caribbean economies Recording with the highest indices. Compared to tariffs, Transport costs have been increasing in importance for Relative Export competitiveness. For example, on average, Exports from Latin America and the Caribbean to the United States Attract Customs Duties of 1.86%, compared to the four forty-five% share of their Value accounted for by International Carriage (Micco and Pérez, two thousand and one). Increasing Component of GDP. The freight and insurance costs of international transport are also tending to increase as a percentage of Gross Domestic Product (GDP). The reason for this is that, both globally and in Latin America and the Caribbean, trade is growing at a faster pace than GDP. In the 1990s, the rate of growth of world exports was more than double that of GDP, and was triple in Latin America and the Caribbean (ECLAC, 2002). Therefore, Although Transport costs have fallen as a percentage of the Value of Trade, Trade Itself has expanded, and with it International Freight's share of GDP. Increasing Component of logistics costs Spending on Transport is also increasing because improved quality of Service is sought, especially. greater dependability and 'just in time' delivery. As a result, the inventory component within the overall costs of logistics declines, while the transport component rises. In the case of the United States, for instance, it is estimated that during the 1990s spending on transport rose from 9.5% to 10% of GDP, while spending on inventories slipped from 4.3% to 3.5% (Gorman, 2002; includes domestic transport. ). Increasing incidence in the Value of traded GoodsLastly, even as a percentage of the Value of imported Goods, the incidence of International Transport costs is increasing. Whereas in the past exports consisted primarily of raw materials and manufactured goods, today trade is increasingly in intermediate goods. For example, the import price of a Mexican-made car imported into Peru includes not only the costs of transporting the vehicle from Veracruz, Mexico, to Callao, Peru, but also the transport costs of importing a number of inputs sourced from a wide range. Supply of countries that Mexico (Hoffmann, two thousand and two). Transport costs: Causes and effects Analysis and Reduction of Transport costs is quite a Complex Issue. Demand for Transport Services is dependent on Trade, which is influenced by a Number of variables that also have an Impact on the costs of Transport. Supply Versus DemandThe cost of Transport is essentially the Price of a Service, and is determined by the Supply and demand. for that service. Lower transport costs reduce the final price, increasing trade. However, an expanding volume of Trade also Reduces the UNIT costs of Transport, allowing for economies of scale and Greater differentiation between different Services in terms of speed, frequency, reliability and Security. Quality Versus CostsAs with Goods, the Production of Transport Services is also. subject to the impact of technological advances. With the use of new information and communication technologies, improvements in infrastructure, and by taking advantage of the growing rate of containerisation, today the same freight and insurance per tonne of cargo can buy a quicker, more reliable service with less variation in delivery time than. a Decade ago. In addition, it is Worth noting that Greater Commercial demands as regards speed have at the Same time Given rise to an increase in the share of Air Transport as compared to Maritime Transport, and May Entail an increase in the average cost of. international transport. The fact that the average cost of freight and insurance rose worldwide in the 1990s. should not be interpreted as a worsening of the international transport system, but rather as a reflection of greater use of air transport and improvements in other transport services. Equivalently, when interpreting the regression results Presented later in this Paper, improved Port efficiency does not necessarily imply Lower Transport costs, as the user May be required to pay for the improved Service. Direct impacts Versus indirect ImpactsThe Distance separating countries impacts on Trade between them. in different ways. The main models used to explain international trade flows can be described as 'gravitational': countries trade with one another depending on their patterns of production, income, and whether they belong to economic blocs, with the distance between them also having some bearing. That gives an advantage to countries located in the 'center of gravity', and hence the name of the model. There is an assumption of a close link between distance and transport costs, which would explain why countries closer to one another trade more than with countries further away. In practice, distance may also have a bearing on other characteristics of countries, which leads them to trade more. For instance, countries located nearer to one another tend to have more similar histories, Cultures and Languages. Most importantly, provides Closeness geographical scope FO.

ผลลัพธ์ (อังกฤษ) 3:

Port Efficiency and International Trade:
Port Efficiency as a Determinant of Maritime Transport Costs




, Abstract This Paper examines the determinants of waterborne, transport costs with particular emphasis on the efficiency at port, level. Its main contribution is (1) to generate statistically quantifiable measures of port efficiency from a survey of Latin American. Common, user portsAnd (2) to estimate a model of waterborne, transport costs including the previously generated port efficiency measures. As explanatory variables. In order to incorporate different port efficiency measures from, the survey we use principal component. Analysis (PCA). Our estimations show that the specified variables in the model explain a great proportion of the change. In waterborne transport costs.With regard to port efficiency the result, is especially important for one of the port efficiency measures obtained through. PCA with an estimated elasticity equivalent to that of distance. Other explanatory variables which show to be statistically. Significant are the monthly liner, service availability distance and the, goods' value per ton.The conclusions are relevant for policy makers as they show and quantify that port efficiency is a relevant determinant. Of a country 's competitiveness - and in, this respect there still exist big differences among Latin American, countries. Unlike most other, relevant variables port efficiency can be influenced by public policies.
Keywords: Port efficiency multivariate,, Analysis freight costs,,Latin America







INTRODUCTION: MARITIME TRANSPORT COSTS AND INTERNATIONAL TRADE
The paper is organised as follows:? This chapter contains a general introduction that looks at the relation between transport costs and international, trade. In the, second chapter principal components are computed from a Latin American Port survey. The third chapter describes. The model and the, estimation resultsFollowed by the conclusion and interpretation of results.

The impact of the costs of transport on foreign trade and economic. Development
Improvements in international transport services are one of the main features of economic globalisation. Together. With progress in telematics standardisation and trade liberalisation faster,,,More reliable and cheaper transport services are contributing to the integration of production processes at the global. Level.
International freight has an impact on trade similar to customs tariffs or the exchange rate: a reduction in the. Costs of transport directly stimulates exports, and imports