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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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Related research
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)
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  3. Bennathan, E. & Escobar, L. & Panagakos, G., 1989. "Deregulation Of Shipping - What Is To Be Learned From Chile," World Bank - Discussion Papers 67, World Bank.
  4. 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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  5. 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)
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  6. 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)
  7. 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.
  8. 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)
  9. 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)
  10. 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)
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