Path dependence in port choice: some quasi-experimental evidence

Hangtian Xu and Hidekazu Itoh

Applied Economics Letters, 2020, vol. 27, issue 10, 823-830

Abstract: This study analyzes the port choice dynamics of Japanese container shippers before and after the 1995 Great Hanshin earthquake, which destroyed Japan’s largest port. We find that the earthquake disintegrated some transportation networks that had initially been maintained because of path dependence. At the same time, it led to establishing a new path dependence. They jointly explain why the negative impact of the earthquake on the damaged port is persistent rather than temporary.

Date: 2020
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DOI: 10.1080/13504851.2019.1646397

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