Port efficiency and international trade in China

Abstract

The relationship between port infrastructure and international trade is linked inextricably since ports remain the main gateway for international trade. All international ports thus have as their goal the effective and efficient management of ever-increasing cargo. And yet, previous research on the impact of the port efficiency on international trade remain subject to some biases in their measurement model. In order to correct them, this study developed a new port efficiency measurement model using the bootstrapping slacks-based-measurements data envelopment analysis. The study then built the linkage model with international trade by applying the gravity model using Poisson pseudo-maximum likelihood and multilateral resistance term. Based on data from 2002 to 2012 on 23 major container ports in China, our result shows a more significant and positive impact of port efficiency on international trade than in other models.