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The international competitiveness of China’s shipbuilding industry

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  • Jiang, Liping
  • Bastiansen, Erik
  • Strandenes, Siri P.

Abstract

This paper introduces profit rate as a more relevant measure of international shipbuilding competitiveness. We also develop a model to identify competitiveness factors and their relative importance. Our findings suggest that Chinese competitiveness derives from shipbuilding costs, whereas contract price deviations are the driver for Japan and South Korea. We argue that China became more competitive in building of bulk carriers and tankers than Japan and to a lesser extent than South Korea after year 2000 and that a market trough would further strengthen China’s competitiveness. Our results have broad implications for monitoring industrial performance and formulating competitive strategies for shipyards.

Suggested Citation

  • Jiang, Liping & Bastiansen, Erik & Strandenes, Siri P., 2013. "The international competitiveness of China’s shipbuilding industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 39-48.
    • Handle: RePEc:eee:transe:v:60:y:2013:i:c:p:39-48
    DOI: 10.1016/j.tre.2013.10.001
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    References listed on IDEAS

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    1. Chia-Chan Chou & Pao-Long Chang, 2004. "Core competence and competitive strategy of the Taiwan shipbuilding industry: a resource-based approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 31(2), pages 125-137, April.
    2. Liping Jiang & Siri Pettersen Strandenes, 2012. "Assessing the cost competitiveness of China's shipbuilding industry," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(4), pages 480-497, December.
    3. Floriano Pires Jr. & Thomas Lamb & Cassiano Souza, 2009. "Shipbuilding performance benchmarking," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 11(3), pages 216-235.
    4. David Glen, 2006. "Shipbuilding disputes: the WTO panel rulings and the elimination of operating subsidy from shipbuilding," Maritime Policy & Management, Taylor & Francis Journals, vol. 33(1), pages 1-21, February.
    5. Floriano C. M. Pires & Thomas Lamb, 2008. "Establishing performance targets for shipbuilding policies," Maritime Policy & Management, Taylor & Francis Journals, vol. 35(5), pages 491-502, October.
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    Cited by:

    1. Anna, Merika & Anna, Triantafyllou & George, Zombanakis, 2019. "Wage and tax competitiveness: The case of Hellenic shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 255-270.
    2. Aldis Bulis & Sajal Kabiraj & Md Nur Alam Siddik, 2021. "Competitiveness Impedimental Factors of Latvian Manufacturing Companies in China," Global Business Review, International Management Institute, vol. 22(2), pages 290-310, April.
    3. Pero, Margherita & Stößlein, Martin & Cigolini, Roberto, 2015. "Linking product modularity to supply chain integration in the construction and shipbuilding industries," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 602-615.
    4. Park, Jaehun & Lee, Dongha & Zhu, Joe, 2014. "An integrated approach for ship block manufacturing process performance evaluation: Case from a Korean shipbuilding company," International Journal of Production Economics, Elsevier, vol. 156(C), pages 214-222.
    5. Xiaofeng Xu & Jun Hao & Yirui Deng, 2017. "Industry Interdependence Dynamics and Structure Change Causal Analysis: An Empirical Study on China’s Shipbuilding Industry," Sustainability, MDPI, vol. 9(4), pages 1-19, March.

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