Demand analysis in Angola seaports |
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| Authors: | Carlos Pestana Barros |
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| Institution: | 1. ISEG – Lisbon School of Economics and Management, ULisboa, and CEsA – Research Centre on African, Asian and Latin American Studies, Lisbon, PortugalCabrros@iseg.Ulisboa.Pt |
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| Abstract: | ABSTRACTThis paper presents a demand analysis of Angola seaports from 1996 to 2013 using the Berry, Levinsohn, and Pakes (BLP) demand model. The BLP is a random coefficient Logit demand model that takes into account the endogeneity of the price in the demand equation. The model reveals that seaports on Angola is explained by the average price, the price of maritime transport services, the price of substitute imports by airports, and by the income in the port region. The price is endogenous in demand equation and the endogeneity is taken into account in demand estimation. The price of air transportation is negative, and therefore it is a complementary good. The price of container handling is positive, and therefore it is a substitution good. Policy implication is also derived. |
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| Keywords: | Angola seaports demand analysis BLP demand model |
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