Abstract
Transport connectivity has increasing importance in the global economy. Using a gravity equation model, this paper investigates the effect of liner shipping connectivity on seaborne containerised exports. We use a dataset from the European Comext database that includes information about the transport mode and use of containers for trade flows between EU and non-EU countries. Measuring the dependent variable with the required accuracy and addressing the potential reverse causality between trade flows and shipping connectivity, we document a positive effect of liner shipping connectivity on seaborne containerised exports and a negative effect on seaborne non-containerised ones. The results of this paper support the policy recommendations of international institutions in terms of incentivizing liner shipping connectivity.
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