The Trade-Reducing Effects of Restrictions on Liner Shipping

38 Pages Posted: 20 Apr 2016

See all articles by Fabien Bertho

Fabien Bertho

SciencesPo

Ingo Borchert

World Bank - Development Research Group (DECRG)

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Date Written: June 1, 2014

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

Suggested Citation

Bertho, Fabien and Borchert, Ingo and Mattoo, Aaditya, The Trade-Reducing Effects of Restrictions on Liner Shipping (June 1, 2014). World Bank Policy Research Working Paper No. 6921. Available at SSRN: https://ssrn.com/abstract=2456044

Fabien Bertho (Contact Author)

SciencesPo ( email )

Rue de l'Université 13
Paris
France

Ingo Borchert

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Aaditya Mattoo

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

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