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When you need it quick, let us ship it right“: On the importance of port efficiency and service quality to comply with food trade standards in Ghana

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  • Kornher, Lukas
  • Sakyi, Daniel
  • Tannor, Linus Linnaeus

Abstract

Agricultural exports are especially important because of their great potential for poverty reduction among smallholder farmers. However, many African countries, such as Ghana, fail to realize their full export potential due to institutional and technical constraints. This paper examines the importance of port efficiency and service quality in complying with food trade standards in Ghana. We provide a stylized theoretical model in which exporting firms are willing to pay for improved port service quality as long as the marginal revenue derived from a reduced likelihood of (border) rejection exceeds the marginal costs for improved service quality. We test the model's predictions using primary data from 120 agri-food exporters in Ghana. Our results show that about two-thirds of exporting firms have a positive willingness-to-pay for a reduction in the handling time at the port and the risk of spoilage due to inadequate handling. These findings emphasize the importance of trade facilitation measures in improving port efficiency and service quality to accelerate agricultural exports.

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  • Kornher, Lukas & Sakyi, Daniel & Tannor, Linus Linnaeus, 2024. "When you need it quick, let us ship it right“: On the importance of port efficiency and service quality to comply with food trade standards in Ghana," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344297, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344297
    DOI: 10.22004/ag.econ.344297
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    1. Luisa Kinzius & Alexander Sandkamp & Erdal Yalcin, 2019. "Trade protection and the role of non-tariff barriers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 603-643, November.
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    1. Wassie, Mengistu Alamneh & Kornher, Lukas & Zaki, Chahir, 2024. "Revisiting the Impact of Trade Facilitation Measures in Africa: Structural Gravity Estimation and Ad Valorem Tariff Equivalents," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344296, International Association of Agricultural Economists (IAAE).

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    Keywords

    Agribusiness; International Relations/Trade;

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