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The economic impact study of maritime policy issues: application to the German case

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  • Jan A. Van Der Linden

Abstract

Input-output analysis basically provides an estimation of a sector's economic impact by taking into account the indirect effects on all other sectors. For purposes of policy making, however, this may produce rather rigid and inaccurate results. This paper, therefore, introduces some extensions to the basic impact analysis. These extensions secure flexibility, completeness and accurateness of the outcomes. First, an accurate cost structure is determined in a bottom-up approach, i.e. by using data from a sample of representative companies. This allows for reliable outcomes and a flexible definition of sub-sectors. Secondly, the analysis is made in an intercountry context. Thirdly, the expenditure effects of generated income are determined by a macroeconomic module. Fourthly, company-level responses to alternative policy scenarios are investigated and translated into changing model parameters. These four basic elements are applied in a case study concerning the shipping sector of Germany. The scenarios are a continuation of the present policy, a laissez-faire policy, and two framework policies in which the government creates a favourable environment for shipping companies. For each scenario, the effects on value added, employment, tax revenues and expenditures are analysed and evaluated. This paper, thus, shows the relevance of accordingly amplified input-output analysis for policy purposes.

Suggested Citation

  • Jan A. Van Der Linden, 2001. "The economic impact study of maritime policy issues: application to the German case," Maritime Policy & Management, Taylor & Francis Journals, vol. 28(1), pages 33-54, January.
    • Handle: RePEc:taf:marpmg:v:28:y:2001:i:1:p:33-54
    DOI: 10.1080/03088830120336
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    Cited by:

    1. Chang, Young-Tae & Shin, Sung-Ho & Lee, Paul Tae-Woo, 2014. "Economic impact of port sectors on South African economy: An input–output analysis," Transport Policy, Elsevier, vol. 35(C), pages 333-340.
    2. Regina Salvador, 2014. "The Emerging Portuguese Maritime Mega Cluster: Endogenous Dynamics and Strategic Actions," ERSA conference papers ersa14p1095, European Regional Science Association.
    3. Morrissey, Karyn & O’Donoghue, Cathal, 2013. "The role of the marine sector in the Irish national economy: An input–output analysis," Marine Policy, Elsevier, vol. 37(C), pages 230-238.
    4. Gaygysyz Ashyrov & Tiiu Paas & Maryna Tverdostup, 2018. "The Input-Output Analysis Of Blue Industries: Comparative Study Of Estonia And Finland," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 109, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    5. Morrissey, Karyn & O'Donoghue, Cathal, 2012. "The Potential for an Irish Maritime Transportation Cluster: An Input-Output Analysis," Working Papers 148836, National University of Ireland, Galway, Socio-Economic Marine Research Unit.

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