The Impact of Port Productivity Efficiency on Trade: Evidence from a Panel of African Countries
DOI:
https://doi.org/10.54172/xjzesf13Keywords:
African Economies, Ports, Fixed-Effects Model, Random-Effects Model, GMMAbstract
Seaports and their efficiency are of particular importance to international trade flows. Apart from the efficiency of seaports, there is no empirical evidence of how they affect merchandise trade. This research aims to estimate the impact of the productive efficiency of ports on trade for a sample of 21 African countries during the period from 2009 to 2019. We use the dynamic cross-sectional time-series data models (Dynamic Panel Model) and rely on the generalized moment's technique (system-GMM), as well as the fixed-effect and random-effect model in the estimation. The results of the study indicated a weak positive impact of port efficiency on trade performance, due to the low levels of port productivity in African countries. In addition, the study found that there is a negative impact of the maritime connectivity index on trade. From a policy-oriented viewpoint, enhancing the efficiency of seaports in Africa is what policy reforms should target.
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