ON THE (MIS)MEASUREMENT OF INTERNATIONAL TRANSPORT COSTS

Mihalis Chasomeris

South African Journal of Economics, 2009, vol. 77, issue 1, 148-161

Abstract: Several world institutions and researchers use import cif/fob ratios to measure a country's international transport costs. In this paper, the relationship between annual cif/fob ratios and compositions of imports are examined via correlation analysis. The findings show that where the quality of the data is reliable, a country's composition of imports has a significant effect on that country's cif/fob ratios; hence researchers cannot use the ratio as a reliable measure of direct shipping costs. Researchers should be wary of substituting country cif/fob ratios for direct measures of transport costs.

Date: 2009
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https://doi.org/10.1111/j.1813-6982.2009.01198.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:sajeco:v:77:y:2009:i:1:p:148-161

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