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Where Has the Rum Gone? Firms’ Choice of Transport Mode under the Threat of Maritime Piracy

Author

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  • Alexander-Nikolai Sandkamp
  • Shuyao Yang

Abstract

Despite a general agreement that piracy poses a significant threat to maritime shipping, empirical evidence regarding its economic consequences remains scarce. This paper takes a step towards filling the gap by combining firm-level Chinese customs data with information on pirate attacks to investigate how exporting firms respond to maritime piracy. It finds that overall exports along a particular shipping route fall following an increase in pirate activity. In addition, piracy induces firms to switch from ocean to air shipping, while the remaining ocean shipments become larger.

Suggested Citation

  • Alexander-Nikolai Sandkamp & Shuyao Yang, 2018. "Where Has the Rum Gone? Firms’ Choice of Transport Mode under the Threat of Maritime Piracy," ifo Working Paper Series 271, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_271
    as

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    File URL: https://www.ifo.de/DocDL/wp-2018-271-sandkamp-yang-transport-maritime-piracy.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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