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Network effects in the East Asia container ports industry

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  • Joyce M. W. Low
  • Loon Ching Tang

Abstract

This paper proposes an integrated set of 4Cs indices, namely, centrality index, competition index, congestion index and concentration index to examine network effects in the East Asia container port industry. Empirical analysis confirms that larger ports enjoy greater direct network effects related to economies of scale, whereas, smaller ports leverage on indirect network effects to widen their scopes of influence to attract vessel calls. Ports tend to engage in more competitive interactions with their counterparts within the same region, even though cooperative relationships among ports across regions are beneficial. In the light of the empirical results, the paper proceeds to explain some important managerial and policy implications.

Suggested Citation

  • Joyce M. W. Low & Loon Ching Tang, 2012. "Network effects in the East Asia container ports industry," Maritime Policy & Management, Taylor & Francis Journals, vol. 39(4), pages 369-386, July.
    • Handle: RePEc:taf:marpmg:v:39:y:2012:i:4:p:369-386
    DOI: 10.1080/03088839.2012.689879
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    References listed on IDEAS

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    1. Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks," Introductory Chapters, in: Connections: An Introduction to the Economics of Networks, Princeton University Press.
    2. Shy,Oz, 2001. "The Economics of Network Industries," Cambridge Books, Cambridge University Press, number 9780521805001, September.
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    Cited by:

    1. Min Ju Bae & Ek Peng Chew & Loo Hay Lee & Anming Zhang, 2013. "Container transshipment and port competition," Maritime Policy & Management, Taylor & Francis Journals, vol. 40(5), pages 479-494, September.
    2. Nguyen Tran & Hans-Dietrich Haasis, 2014. "Empirical analysis of the container liner shipping network on the East-West corridor (1995–2011)," Netnomics, Springer, vol. 15(3), pages 121-153, November.
    3. Hong-Oanh Nguyen & Anthony Chin & Jose Tongzon & Mahinda Bandara, 2016. "Analysis of strategic pricing in the port sector: The network approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 264-281, September.
    4. Talley, Wayne K., 2014. "Maritime transport chains: carrier, port and shipper choice effects," International Journal of Production Economics, Elsevier, vol. 151(C), pages 174-179.

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