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The impact of specialization, ownership, competition and regulation on efficiency: a case study of Indian seaports

Author

Listed:
  • Nicole Adler

    (Hebrew University of Jerusalem)

  • Georg Hirte

    (TU Dresden)

  • Shravana Kumar

    (TU Dresden
    Hochschule Bremen City University of Applied Sciences)

  • Hans-Martin Niemeier

    (Hochschule Bremen City University of Applied Sciences)

Abstract

We develop a two-stage formulation to estimate seaport performance and to understand the drivers of efficiency, which could potentially include specialization, ownership, competition and tariff regulation. The first-stage non-parametric, slacks-based measure estimates the technical efficiency of each port. For the second-stage analysis, we develop a set of contextual variables including an absolute measure of specialization and a berth-level measure of ownership structure. To measure competition, we develop spatial measures that quantify the level of competition as a function of distance. We subsequently apply this formulation to major Indian seaports, covering a period of 21 years, from 1995 to 2015. The first-stage results suggest that average seaport efficiency has increased gradually over time. The second-stage fixed effects regressions show that specialization and external stakeholder participation have significant positive impacts on seaport performance. Perhaps surprisingly, we find that, in a tiered governance framework, competition between major seaports and local seaports has a significant negative impact on performance, potentially due to excessive infrastructure. Finally, changes in the regulatory mechanism over time are shown to be efficiency improving.

Suggested Citation

  • Nicole Adler & Georg Hirte & Shravana Kumar & Hans-Martin Niemeier, 2022. "The impact of specialization, ownership, competition and regulation on efficiency: a case study of Indian seaports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(3), pages 507-536, September.
    • Handle: RePEc:pal:marecl:v:24:y:2022:i:3:d:10.1057_s41278-021-00200-y
    DOI: 10.1057/s41278-021-00200-y
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