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Productivity growth, scale economies, ship size economies and technical progress for the container shipping industry in Taiwan

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  • Wu, Wei-Ming
  • Lin, Jenn-Rong

Abstract

Rather than adding up all cost items of ship operation in the traditional vessel-based approach, this paper develops a theoretical model to evaluate and decompose the total factor productivity (TFP) growth of the container shipping industry in Taiwan. The results show that scale economies and ship size economies play the dominant roles in improving TFP growth. Since 2006, the dominance of TFP growth has gradually shifted from scale economies to ship size economies. This finding reconfirms the cost advantage of large vessels. In addition, it indicates that the deployment of large vessels has led to a problem of serious over-capacity.

Suggested Citation

  • Wu, Wei-Ming & Lin, Jenn-Rong, 2015. "Productivity growth, scale economies, ship size economies and technical progress for the container shipping industry in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 1-16.
    • Handle: RePEc:eee:transe:v:73:y:2015:i:c:p:1-16
    DOI: 10.1016/j.tre.2014.10.011
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    3. Efecan, Volkan & Temiz, İzzettin, 2023. "Assessing the technical efficiency of container ports based on a non-monotonic inefficiency effects model," Utilities Policy, Elsevier, vol. 81(C).
    4. Jiawei Ge & Mo Zhu & Mei Sha & Theo Notteboom & Wenming Shi & Xuefeng Wang, 2021. "Towards 25,000 TEU vessels? A comparative economic analysis of ultra-large containership sizes under different market and operational conditions," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 587-614, December.
    5. Bambang Sumali & April Gunawan & Larsen Barasa, 2018. "The Impact of The Ship Spare Parts Supply Delays to The Cancelation of Ships Departure at Humolco Trans Inc Jakarta," International Review of Management and Marketing, Econjournals, vol. 8(6), pages 101-106.

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