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Connectivity and trade relativity: the case of ASEAN

Author

Listed:
  • Y. H. Venus Lun

    (The Hong Kong Polytechnic University)

  • Jan Hoffmann

    (United Nations Conference on Trade and Development (UNCTAD))

Abstract

To explore the concept of connectivity and trade relativity (CTR), this paper presents a research model to illustrate: (1) the impact of shipping connectivity on two types of trade flows, and (2) the mediating effect of intra-regional trade (“intra-trade”) on the relationship between shipping connectivity and extra-regional trade (“extra-trade”). Understanding the relationships among shipping connectivity and the two types of trade flows (intra-trade and extra-trade) provides insights for managers to make their location decision and identify countries with appropriate levels of shipping connectivity to conduct their trading related activities, and for policy makers to develop measures to enhance trade competitiveness and shipping connectivity. This study also contributes to the concepts of trade creation and trade diversion through the examination of shipping connectivity. A regional trade agreement such as the Association of Southeast Asian Nations (ASEAN) leads to more intra-trade. Some of this trade is new (trade creation) and some might substitute for extra-trade (trade diversion). By incorporating shipping connectivity into the analysis, we show that the trade diversion effect will be reduced thanks to the overall increased shipping connectivity, as the latter will not only benefit intra-trade but also extra-trade.

Suggested Citation

  • Y. H. Venus Lun & Jan Hoffmann, 2016. "Connectivity and trade relativity: the case of ASEAN," Journal of Shipping and Trade, Springer, vol. 1(1), pages 1-13, December.
    • Handle: RePEc:spr:josatr:v:1:y:2016:i:1:d:10.1186_s41072-016-0015-1
    DOI: 10.1186/s41072-016-0015-1
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    Cited by:

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    2. Wang, Chao & Kim, Yul-Seong & Kim, Chi Yeol, 2021. "Causality between logistics infrastructure and economic development in China," Transport Policy, Elsevier, vol. 100(C), pages 49-58.
    3. del Rosal, Ignacio & Moura, Ticiana Grecco Zanon, 2022. "The effect of shipping connectivity on seaborne containerised export flows," Transport Policy, Elsevier, vol. 118(C), pages 143-151.
    4. Tovar, Beatriz & Wall, Alan, 2022. "The relationship between port-level maritime connectivity and efficiency," Journal of Transport Geography, Elsevier, vol. 98(C).
    5. Jan Hoffmann & Gordon Wilmsmeier & Y.H. Venus Lun, 2017. "Connecting the world through global shipping networks," Journal of Shipping and Trade, Springer, vol. 2(1), pages 1-4, December.
    6. Adedotun Joseph Adenigbo & Joash Mageto & Rose Luke, 2023. "Effect of shipping trade on economic growth in Nigeria: the Vector Error Correction Model (VECM) approach," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-18, December.
    7. Harilaos N. Psaraftis & Thalis Zis, 2021. "Impact assessment of a mandatory operational goal-based short-term measure to reduce GHG emissions from ships: the LDC/SIDS case study," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 445-467, September.
    8. Kee-hung Lai & Yu Pang & Christina W. Y. Wong & Y. H. Venus Lun & Y. N. Eppie Ng, 2019. "Are trade and transport logistics activities mutually reinforcing? Some empirical evidences from ASEAN countries," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-17, December.

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