The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis

Alexandra Fratila (Adam),Sorin Cristian Nita,Andrei Hrebenciuc,Ioana Andrada Gavril (Moldovan)

doi:10.3390/su13147961

Alexandra Fratila (Adam), Sorin Cristian Nita + Show 2 more

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https://doi.org/10.3390/su13147961

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Journal: Sustainability	Publication Date: Jul 16, 2021
Citations: 40	License type: CC BY 4.0

Affiliation: Bucharest University of Economic Studies

Abstract

Maritime transport is one of the main activities of the blue economy, which plays an important role in the EU. In this paper, we aim to assess the impact of maritime transport, related investment, and air pollution on economic growth within 20 countries of the European Union, using eight panel data regression models from 2007 to 2018. Our results confirm that maritime transport, air pollutants (NOx and SO2) from maritime transport, and investment in maritime port infrastructure are indeed positively correlated with economic growth. In other words, an increase of 10% in these factors has generated an associated increase in economic growth rate of around 1.6%, 0.4%, 0.8%, and 0.7% respectively. Alongside the intensity of economic maritime activities, pollution is positively correlated with economic growth, and thus it is recommended that policymakers and other involved stakeholders act to diminish environmental impacts in this sector using green investment in port infrastructure and ecological ships, in accordance with the current European trends and concerns.

Highlights

Coastal tourism accounts for 45% of the total value added at factor cost of the blue economy, while maritime transport and its related sectors sum up around 40% of the total value added at factor cost of blue economy activities (Figure 1)
The results show that when emissions of SO2 from maritime transport increase by 10%, the GDPpc increases by 0.415%, on average, and when emissions of NOx from maritime transport increase by 10%, the GDPpc increases by 0.803%, on average
These results are in line with the positive correlation we found between maritime transport and economic growth: alongside with the intensification of maritime transport, the pollution would rise, but economic growth would be fostered

Summary

Introduction

Regarding the blue economy of the EU, seven established sectors sum up all the blue activities: marine living and non-living resources, marine renewable energy, port activities, shipbuilding and repair, maritime transport, and coastal tourism. These seven established sectors have a contribution of around 1.5% to the European Union’s economy in terms of gross value added, and they employ over 2.2% of the employed persons in the EU [1]. Maritime transport, and its related sectors are the largest sectors in terms of the value added at factor cost. Coastal tourism accounts for 45% of the total value added at factor cost of the blue economy, while maritime transport and its related sectors (shipbuilding and repair and ports activities) sum up around 40% of the total value added at factor cost of blue economy activities (Figure 1)

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Conclusion