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Examining the economic impact of transport complex economies

Author

Listed:
  • Y. H. Venus Lun

    (The Hong Kong Polytechnic University)

  • John Carlton

    (City University London)

  • Khaild Bichou

    (City University London)

Abstract

Transport complex economies (TCEs), which comprise both upstream and downstream firms in the transport chain that conduct shipping and trade-related activities, can be desirable locations for port users (e.g., traders, logistics service providers, shipping lines and terminal operators) to perform their business activities. To explore TCEs, this study identifies trade facilitation measures at both the macro and micro levels to enhance regional performance. Hypotheses have been developed to build a theoretical model to illustrate the relationship between trade facilitation activities and trade costs. The economic outcomes are also examined in the theoretical model. To validate the proposed model, we have collected data from the World Bank and employed structural equation modelling. The result suggests that trade facilitation measures are negatively associated with trade cost. The result also suggests that the trade facilitation measures of a region is positively associated with its economic performance. Based on the findings, users can formulate effective and efficient strategies to select a location for their firm to conduct business activities. The findings illustrate the importance of the development of social capital for trade facilitation from the perspective of policy makers.

Suggested Citation

  • Y. H. Venus Lun & John Carlton & Khaild Bichou, 2016. "Examining the economic impact of transport complex economies," Journal of Shipping and Trade, Springer, vol. 1(1), pages 1-17, December.
    • Handle: RePEc:spr:josatr:v:1:y:2016:i:1:d:10.1186_s41072-016-0005-3
    DOI: 10.1186/s41072-016-0005-3
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    Cited by:

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    2. Ziaul Haque Munim & Hans-Joachim Schramm, 2018. "The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-19, December.
    3. Boldanova, Elena V. & Bakalenko, Natalya P., 2020. "Concession agreements as a means of attracting investment in transport infrastructure," Economic Consultant, Roman I. Ostapenko, vol. 29(1), pages 4-11.
    4. Yuanhong Hu & Min Jiang & Sheng Sun & Yixin Dai, 2022. "Does Trade Facilitation Promote Export Technological Sophistication? Evidence From the European Transition Countries," SAGE Open, , vol. 12(2), pages 21582440221, June.

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