IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05323336.html

The trade-reducing effects of market power in international ports
[Les effets du pouvoir de marché dans les ports internationaux sur le commerce mondial]

Author

Listed:
  • Gabriel Figueiredo de Oliveira

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon)

  • Nicolas Peridy

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon)

Abstract

This paper empirically investigates the impact of port competition on trade developments. The integration of various ports' and maritime container services' quality indexes in augmented gravity models shows that: (i) services that use transshipment instead of direct services between the trading partners decrease the probability to trade by 11 %; (ii) a onestandard-deviation rise in port concentration leads to a reduction in bilateral trade by 15%; (iii) the trade-creation effect from port competition is greater on the export side than on the import side; and (iv) the effect on trade is higher when port competition intensity is measured at regional or global levels (more than 300 km) rather than at a local level.

Suggested Citation

  • Gabriel Figueiredo de Oliveira & Nicolas Peridy, 2019. "The trade-reducing effects of market power in international ports [Les effets du pouvoir de marché dans les ports internationaux sur le commerce mondial]," Post-Print hal-05323336, HAL.
    • Handle: RePEc:hal:journl:hal-05323336
    Note: View the original document on HAL open archive server: https://hal.science/hal-05323336v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-05323336v1/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jane Korinek & Patricia Sourdin, 2010. "Clarifying Trade Costs: Maritime Transport and Its Effect on Agricultural Trade," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 417-435.
    2. Yang, Shanping & Martinez-Zarzoso, Inmaculada, 2014. "A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area," China Economic Review, Elsevier, vol. 29(C), pages 138-151.
    3. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    4. Hercules E Haralambides & Pierre Cariou & Marco Benacchio, 2002. "Costs, Benefits and Pricing of Dedicated Container Terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 4(1), pages 21-34, March.
    5. Peter Egger, 2004. "On the Problem of Endogenous Unobserved Effects in the Estimation of Gravity Models," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 182-191.
    6. Inmaculada Martinez-Zarzoso & Celestino Suarez-Burguet, 2005. "Transport costs and trade: Empirical evidence for Latin American imports from the European union," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 14(3), pages 353-371.
    7. Laszlo Matyas, 1997. "Proper Econometric Specification of the Gravity Model," The World Economy, Wiley Blackwell, vol. 20(3), pages 363-368, May.
    8. Gabriel Figueiredo de Oliveira & Pierre Cariou, 2015. "The impact of competition on container port (in)efficiency [L'impact de la concurrence sur l'(in)efficacité des ports à conteneurs]," Post-Print hal-05241975, HAL.
    9. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
    10. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
    11. Chi-Lok, Andrew Yuen & Zhang, Anming, 2009. "Effects of competition and policy changes on Chinese airport productivity: An empirical investigation," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 166-174.
    12. Harrigan, James, 1996. "Openness to trade in manufactures in the OECD," Journal of International Economics, Elsevier, vol. 40(1-2), pages 23-39, February.
    13. Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009. "The trade reducing effects of market power in international shipping," Journal of Development Economics, Elsevier, vol. 89(1), pages 84-97, May.
    14. Robert C. Feenstra, 2002. "Border Effects and the Gravity Equation: Consistent Methods for Estimation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 491-506, November.
    15. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
    16. Nuno Limão & Anthony J. Venables, 2001. "Infrastructure, Geographical Disadvantage, Transport Costs, and Trade," The World Bank Economic Review, World Bank, vol. 15(3), pages 451-45-479.
    17. Theo E. Notteboom * & Jean-Paul Rodrigue, 2005. "Port regionalization: towards a new phase in port development," Maritime Policy & Management, Taylor & Francis Journals, vol. 32(3), pages 297-313, July.
    18. David Hummels & Volodymyr Lugovskyy, 2006. "Are Matched Partner Trade Statistics a Usable Measure of Transportation Costs?," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 69-86, February.
    19. Figueiredo De Oliveira, Gabriel & Cariou, Pierre, 2015. "The impact of competition on container port (in)efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 124-133.
    20. Egger, Peter & Larch, Mario, 2008. "Interdependent preferential trade agreement memberships: An empirical analysis," Journal of International Economics, Elsevier, vol. 76(2), pages 384-399, December.
    21. Bruce A. Blonigen & Wesley W. Wilson, 2008. "Port Efficiency and Trade Flows," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 21-36, February.
    22. Hoekman, Bernard & Nicita, Alessandro, 2011. "Trade Policy, Trade Costs, and Developing Country Trade," World Development, Elsevier, vol. 39(12), pages 2069-2079.
    23. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    24. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel F De Oliveira & Nicolas Peridy, 2019. "The trade-reducing effects of market power in international ports," Economics Bulletin, AccessEcon, vol. 39(4), pages 2674-2687.
    2. P. Montalbano & S. Nenci, 2014. "Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 730-740, March.
    3. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596, March.
    4. Gabriel FIGUEIREDO DE OLIVEIRA & Nicolas PERIDY, 2015. "L’Impact Des Coûts A L’Échange Sur Le Commerce Des Pays Mena: Le Rôle Des Couts Directs Et Indirects Liés Au Transport Maritime," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 41, pages 125-147.
    5. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," Sciences Po Economics Publications (main) tel-03681980, HAL.
    6. Marco Fugazza, 2015. "Maritime Connectivity And Trade," UNCTAD Blue Series Papers 70, United Nations Conference on Trade and Development.
    7. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    8. Alberto Behar & Anthony J. Venables, 2011. "Transport Costs and International Trade," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 5, Edward Elgar Publishing.
    9. Richard Pomfret & Patricia Sourdin, 2010. "Why do trade costs vary?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 709-730, December.
    10. Craig Macphee & Peter Cook & Wanasin Sattayanuwat, 2013. "Transportation and The International Trade of Eastern and Southern Africa," South African Journal of Economics, Economic Society of South Africa, vol. 81(2), pages 225-239, June.
    11. Borchert, Ingo & Mattoo, Aaditya, 2016. "The trade reducing effects of restrictions on liner shippingAuthor-Name: Bertho, Fabien," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 231-242.
    12. De Oliveira, Gabriel Figueiredo, 2014. "Determinants of European freight rates: The role of market power and trade imbalance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 62(C), pages 23-33.
    13. Marie M Stack & Rob Ackrill & Martin Bliss, 2019. "Sugar trade and the role of historical colonial linkages," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 79-108.
    14. Wessel, Jan, 2019. "Evaluating the transport-mode-specific trade effects of different transport infrastructure types," Transport Policy, Elsevier, vol. 78(C), pages 42-57.
    15. Ruhu A Salim & Mohammad Mahfuz Kabir, 2011. "Does More Trade Potential Remain in Arab States of the Gulf ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 217-243.
    16. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Fitting the Gravity Model when Zero Trade Flows are Frequent: a Comparison of Estimation Techniques using Africa's Trade Data," GlobalFood Discussion Papers 230588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    17. A. Cheptea & A. Gohin & Marilyne Huchet, 2008. "Applying the gravity approach to sector trade: who bears the trade costs?," Post-Print hal-00742046, HAL.
    18. Dominik Boddin & Frank Stähler, 2024. "Import tariffs and transport prices," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(2), pages 430-458, May.
    19. Woltjer, Geert & Tabeau, Andrzej, 2008. "Land supply and Ricardian rent," Conference papers 331674, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Tamaş Anca, 2020. "Why should the gravity model be taught in business education?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 422-433, July.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05323336. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.