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Endowment, market potential, and spatial dynamics of industrial locations: Evidence from global shipbuilding

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  • Ho, Chun-Yu
  • Li, Dan
  • Peng, Tingting
  • Xiao, Zhijia

Abstract

We compile a novel panel dataset of ship orders across 30 countries from 1896 to 2020 to examine the evolution of the global shipbuilding industry across time and space. We document a transition in the shipbuilding production location from European countries to Asian countries over the sample period. We further apply a panel error-correction model (ECM) to show that both relative capital endowment and market potential account for this transition in the long run, while market potential exerts a more significant influence on ship production in the short run.

Suggested Citation

  • Ho, Chun-Yu & Li, Dan & Peng, Tingting & Xiao, Zhijia, 2025. "Endowment, market potential, and spatial dynamics of industrial locations: Evidence from global shipbuilding," Economics Letters, Elsevier, vol. 248(C).
    • Handle: RePEc:eee:ecolet:v:248:y:2025:i:c:s0165176524005986
    DOI: 10.1016/j.econlet.2024.112114
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    References listed on IDEAS

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    More about this item

    Keywords

    Market potential; Factor endowment; Shipbuilding industry; Panel error-correction model;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative

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