In recent years the Israeli government has somewhat relaxed the previously severe restrictions on charter flights to Israel. This study suggests that liberalisation will benefit the balance of payments and the national economy, but that some restriction is desirable.
As in their article on Australian exports (in the May 1977 issue of this Journal), the authors find that the incidence of transport costs on exports from the United Kingdom to the United States is greater than that of tariffs. Savings in freight costs would stimulate international trade.
The authors find that the ad valorem incidence of transport costs on Australian exports is two or three times as high as that of most-favoured-nation tariffs. This is probably true of any developing countries. Suggestions are made for reducing transport costs.
