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MARITIME CONNECTIVITY AND TRADE

Marco Fugazza ()

No 70, UNCTAD Blue Series Papers from United Nations Conference on Trade and Development

Abstract: Connectivity is a crucial determinant of bilateral exports. This paper presents an empirical assessment of the relationship between maritime connectivity and exports in containerizable goods during the period 2006-2012. Based on a unique dataset empirical investigations unequivocally show that lacking a direct maritime connection with a trade partner is associated with lower values of exports. Estimates point to a range varying from minus 42 per cent to minus 55 per cent. When assessing the effect of the number transhipments necessary to connect country pairs, any additional transhipment is associated with a 20 to 25 per cent lower value of exports. Results further suggest that in the absence of a bilateral connectivity indicator the impact of bilateral distance on bilateral exports is likely to be over-estimated.

Date: 2015
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Citations: View citations in EconPapers (12)

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