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Where has the rum gone? The impact of maritime piracy on trade and transport

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  • Sandkamp, Alexander
  • Stamer, Vincent
  • Yang, Shuyao

Abstract

Despite a general agreement that piracy poses a significant threat to maritime shipping, empirical evidence regarding its economic consequences remains scarce. This paper combines firm-level Chinese customs data and ship position data with information on pirate attacks to investigate how exporting firms and cargo ships respond to maritime piracy. It finds that overall exports along affected shipping routes fall following an increase in pirate activity. In addition, piracy induces firms to switch from ocean to air shipping, while remaining ocean shipments become larger. At the ship-level, the paper provides evidence for re-routing, as container ships avoid regions prone to pirate attacks.

Suggested Citation

  • Sandkamp, Alexander & Stamer, Vincent & Yang, Shuyao, 2021. "Where has the rum gone? The impact of maritime piracy on trade and transport," Open Access Publications from Kiel Institute for the World Economy 248699, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:248699
    DOI: 10.1007/s10290-021-00442-1
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    More about this item

    Keywords

    Trade; Transport; China; Piracy; Container Shipping;
    All these keywords.

    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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