Abstract

Freight forwarders play a key role in moving goods across international borders. They arrange transport, oversee customs clearance on behalf of their clients, and more generally troubleshoot issues that arise while goods are in transit. This paper reports the results from a survey of 153 freight forwarding firms in Serbia. Respondents report on firm characteristics, operational choices, and conditions at the border posts and terminals where imported goods are cleared for release. One key purpose of the study is to investigate operational trade-offs between time and cost that arise when import shipments are in transit. In three of four hypotheticals, respondents suggest that money savings dominate time savings. Responses regarding real operational decisions such as route choices reinforce this finding. Respondents also reported penalty rates for late delivery of import shipments as well as the value of a typical import shipment. From these responses, it is estimated that the contracted value of one additional (unexpected) day of delivery time in Serbia appears to be approximately 1 percent of the value of the underlying shipment. Document type: Book

Abstract

Africa is estimated to have great potential for agricultural production, but there are a number of constraints inhibiting the development of that potential. Spatial data are increasingly important in the realization of potential as well as the associated constraints. With crop production data generated at 5-minute spatial resolution, the paper applies the spatial tobit regression model to estimate the possible impacts of improvements in transport accessibility in East Africa. It is found that rural accessibility and access to markets are important to increase agricultural production. In particular for export crops, such as coffee, tea, tobacco, and cotton, access to ports is crucial. The elasticities are estimated at 0.3–4.6. In addition, the estimation results show that spatial autocorrelation matters to the estimation results. While a random shock in a particular locality would likely affect its neighboring places, the spatial autoregressive term can be positive or negative, depending on how fragmented the current production areas are. Document type: Book

Abstract

An appropriate rural investment climate (RIC) is essential for rural businesses to be successful and generate employment and income in their communities. Improving the investment climate could facilitate income-generation activities in both farm and nonfarm sectors, thus reducing rural poverty. Nonfarm sector focused growth, combined with agricultural growth, and has been shown by Delgado et al. (1998) to have a significant impact on the local economy through the generation of employment and income. This study is the first to focus on both farm and nonfarm enterprises in its 2010 surveys of RIC in Yemen, Burkina Faso, Nigeria, and Mozambique unlike six previous RIC assessment (RICA) pilot projects that focused only on nonfarm enterprises. This report assesses the weaknesses and strengths of all RIC components in farm and nonfarm enterprises of the four countries surveyed, and recommends measures to address the weaknesses. The report identifies similar business obstacles for farm and nonfarm enterprises and four critical areas of the RIC to be improved. The results of the RICA are based on analyses of obstacles perceived by rural entrepreneurs and on assessments by RIC indicators, enterprise entry and exit, and enterprise performance. To have maximum synergy effects, farm and nonfarm enterprises should be promoted together. Document type: Book

Abstract

Africa has great potential for agriculture. Although international commodity prices have been buoyant, Africa’s supply response seems to be weak. A variety of constraints may exist. Using the case of Tanzania, the paper examines the impact of market connectivity, domestic and international, on farmers’ crop choices. It is shown that the international market connectivity, measured by transport costs to the maritime port, is important for farmers to choose export crops, such as cotton and tobacco. Internal connectivity to the domestic market is also found to be important for growing food crops, such as maize and rice. Among other inputs, access to irrigation and improved seed availability are also important factors in the crop choices of farmers. The size of land area is one constraint to promote the crop shift. The paper also reports the finding that farmers are not using market prices effectively in their choice of crop, even after the endogeneity of local prices is taken into account. Document type: Book