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Trade in international maritime services : how much does policy matter?

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Author Info
Fink, Carsten
Mattoo, Aaditya
Neagu, Ileana Cristina

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Abstract

Maritime transport costs significantly impede international trade. The authors examine why these costs are so high in some countries,and, quantify the importance of two explanations: restrictive trade policies, and private anti-competitive practices. Both matter, they find, but private anti-competitive practices have the greater impact. Trade liberalization, and the breakup of private carrier agreements, would lead to a reduction in average liner transport prices of a third, and cost savings of up to $ 3 billion on goods carried to the United States alone. The policy implications are clear: not only should government policy be further liberalized, but there should be stronger international disciplines on restrictive business practices. The authors propose developing such disciplines in the current round of services negotiations at the World Trade Organization.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2522.

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Date of creation: 31 Jan 2001
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Handle: RePEc:wbk:wbrwps:2522

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Keywords: Transport and Trade Logistics Ports&Waterways Common Carriers Industry Environmental Economics&Policies Economic Theory&Research

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Trujillo, Lourdes & Nombela, Gustavo, 1999. "Privatization and regulation of the seaport industry," Policy Research Working Paper Series 2181, The World Bank. [Downloadable!]
  2. Maurice Obstfeld & Kenneth Rogoff, 2000. "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Working Papers 7777, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Francois, Joseph & Wooton, Ian, 2000. "Trade in International Transport Services: The Role of Competition," CEPR Discussion Papers 2377, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Bennathan, E. & Escobar, L. & Panagakos, G., 1989. "Deregulation Of Shipping - What Is To Be Learned From Chile," World Bank - Discussion Papers 67, World Bank.
  5. Franck, Bernard & Bunel, Jean-Claude, 1991. "Contestability, competition and regulation : The case of liner shipping," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 141-159, March. [Downloadable!] (restricted)
  6. Conlon, R M, 1982. "Transport Cost and Tariff Protection of Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 58(160), pages 73-81, March.
  7. Finger, J M & Yeats, Alexander J, 1976. "Effective Protection by Transportation Costs and Tariffs: A Comparison of Magnitudes," The Quarterly Journal of Economics, MIT Press, vol. 90(1), pages 169-76, February. [Downloadable!] (restricted)
  8. Joseph F, et al Francois, 1996. "Commercial Policy and the Domestic Carrying Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 181-98, February. [Downloadable!] (restricted)
  9. Waters, W G, II, 1970. "Transport Costs, Tariffs, and the Pattern of Industrial Protection," American Economic Review, American Economic Association, vol. 60(5), pages 1013-20, December. [Downloadable!] (restricted)
  10. Limão, Nuno & Venables, Anthony J., 1999. "Geographical Disadvantage: A Heckscher-Ohlin-Von Thunen model of International Specialization," CEPR Discussion Papers 2305, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Micco, Alejandro & Serebrisky, Tomas, 2004. "Infrastructure, competition regimes, and air transport costs: cross-country evidence," Policy Research Working Paper Series 3355, The World Bank. [Downloadable!]
    Other versions:
  2. Jansen, Marion, 2006. "Services Trade Liberalization at the Regional Level: Does Southern and Eastern Africa Stand to Gain from EPA Negotiations?," CEPR Discussion Papers 5800, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Hoekman, Bernard & Saggi, Kamal, 2004. "Trading market access for competition policy enforcement," Policy Research Working Paper Series 3188, The World Bank. [Downloadable!]
    Other versions:
  4. Soamiely Andriamananjara, 2002. "Trade and International Transport Services: An Analytical Framework," International Trade 0211003, EconWPA. [Downloadable!]
  5. Bernard Hoekman, 2000. "The next round of services negotiations: identifying priorities and options," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 31-52. [Downloadable!]
  6. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank. [Downloadable!]
  7. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank. [Downloadable!]
  8. Soloaga, Isidro & Wilson, John S. & Mejia, Alejandro, 2006. "Moving forward faster : trade facilitation reform and Mexican competitiveness," Policy Research Working Paper Series 3953, The World Bank. [Downloadable!]
  9. Wilson, John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2004. "Assessing the potential benefit of trade facilitation : A global perspective," Policy Research Working Paper Series 3224, The World Bank. [Downloadable!]
  10. Robert Stern, 2005. "The Place of Services in the World Economy," Working Papers 530, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  11. Mattoo, Aaditya, 2001. "Shaping future GATS rules for trade in services," Policy Research Working Paper Series 2596, The World Bank. [Downloadable!]
  12. Hoekman, Bernanrd & Ng, Francis & Olarreaga, Marcelo, 2003. "Reducing agrcultural tariffs versus domestic support : what's more important for developing countries?," Policy Research Working Paper Series 2918, The World Bank. [Downloadable!]
  13. Azim M. Sadikov, 2007. "Border and Behind-the-Border Trade Barriers and Country Exports," IMF Working Papers 07/292, International Monetary Fund. [Downloadable!]
  14. Hoekman, Bernard, 2002. "Strengthening the global trade architecture for development," Policy Research Working Paper Series 2757, The World Bank. [Downloadable!]
  15. Mattoo, Aaditya & Hoekman, Bernard, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank. [Downloadable!]
  16. Alan V. Deardorff & Robert M. Stern, 2003. "Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization," Working Papers 505, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  17. Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank. [Downloadable!]
  18. Hoekman, Bernard & Mavroidis, Petros C., 2002. "Economic development, competition policy, and the World Trade Organization," Policy Research Working Paper Series 2917, The World Bank. [Downloadable!]
  19. David Hummels, 2006. "The role of geography and size," INTAL Working Papers 100, Inter-American Development Bank, INTAL. [Downloadable!]
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