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The trade-reducing effects of restrictions on liner shipping

Author

Listed:
  • Bertho, Fabien
  • Borchert, Ingo
  • Mattoo, Aaditya

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.

Suggested Citation

  • Bertho, Fabien & Borchert, Ingo & Mattoo, Aaditya, 2014. "The trade-reducing effects of restrictions on liner shipping," Policy Research Working Paper Series 6921, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6921
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    References listed on IDEAS

    as
    1. Donaldson, Dave & Atkin, David, 2015. "Who?s Getting Globalized? The Size and Implications of Intra-national Trade Costs," CEPR Discussion Papers 10759, C.E.P.R. Discussion Papers.
    2. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    3. Ingo Borchert & Batshur Gootiiz & Aaditya Mattoo, 2014. "Policy Barriers to International Trade in Services: Evidence from a New Database," The World Bank Economic Review, World Bank, vol. 28(1), pages 162-188.
    4. Gootiiz, Batshur & Mattoo, Aaditya, 2009. "Services in Doha : what's on the table ?," Policy Research Working Paper Series 4903, The World Bank.
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    Citations

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    Cited by:

    1. Goh, Shao Hung & Chan, Yuxian, 2016. "Operational shadow pricing in back haul container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 92(C), pages 3-15.
    2. L. DeBenedictis & Am Pinna, 2015. "Islands as 'Bad Geography'. Insularity, Connectedness, Trade Costs and Trade," Working Paper CRENoS 201504, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. Emeka Okoro Akpa, 2022. "Global Trade: Testing Persistence in Global Shipping Based on the Liner Shipping Connectivity Index (LSCI)," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 20(2), pages 127-139.

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    More about this item

    Keywords

    Transport Economics Policy&Planning; Economic Theory&Research; Common Carriers Industry; Free Trade; Emerging Markets;
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