The trade-reducing effects of restrictions on liner shipping

Fabien Bertho, Ingo Borchert and Aaditya Mattoo

No 6921, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines how policy governing the liner shipping sector affects maritime transport costs and seaborne trade flows. The paper uses a novel data set and finds that restrictions, particularly on foreign investment, increase maritime transport costs, strongly but unevenly. The cost-inflating effect ranges from 24 to 50 percent and trade on some routes may be inhibited altogether. Distance increases maritime transport costs, but also attenuates the cost impact of policy barriers. Overall, policy restrictions may lower trade flows on specific routes by up to 46 percent and therefore deserve greater attention in national reform programs and international trade negotiations.

Keywords: Transport Economics Policy&Planning; Economic Theory&Research; Common Carriers Industry; Free Trade; Emerging Markets (search for similar items in EconPapers)
Date: 2014-06-01
New Economics Papers: this item is included in nep-int and nep-tre
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:6921

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