The trade-reducing effects of market power in international ports

Les effets du pouvoir de marché dans les ports internationaux sur le commerce mondial

Gabriel Figueiredo de Oliveira () and Nicolas Peridy ()
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Gabriel Figueiredo de Oliveira: LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon
Nicolas Peridy: LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon

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Abstract: This paper empirically investigates the impact of port competition on trade developments. The integration of various ports' and maritime container services' quality indexes in augmented gravity models shows that: (i) services that use transshipment instead of direct services between the trading partners decrease the probability to trade by 11 %; (ii) a onestandard-deviation rise in port concentration leads to a reduction in bilateral trade by 15%; (iii) the trade-creation effect from port competition is greater on the export side than on the import side; and (iv) the effect on trade is higher when port competition intensity is measured at regional or global levels (more than 300 km) rather than at a local level.

Keywords: Port infrastructure; port competition; Gravity model (search for similar items in EconPapers)
Date: 2019-11-24
Note: View the original document on HAL open archive server: https://hal.science/hal-05323336v1
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Published in Economics Bulletin, 2019, 39 (4), pp.2674-2687

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05323336

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