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Liner shipping plays a crucial role in facilitating the movement of manufactured goods around the world. While previous literature has shown that liner shipping is an important trade driver, potential differences across trade routes and world regions have not as yet been explored. This paper examines whether the impact of liner shipping on bilateral trade flows differs significantly across world regions, as well as exploring other geographical patterns.

Using state-of-the-art gravity modelling, this paper investigates the impact of the UNCTAD's Liner Shipping Bilateral Connectivity Index on bilateral trade in manufactured goods using a comprehensive database of disaggregated trade data for the period from 2006 to 2019.

The results show that the trade effect of liner shipping is greater in long-distance and interregional bilateral flows. For some regions, such as North America and Oceania, the effect is greater than the world average, while for others, such as Africa and South America, the effect is significantly smaller. The trade effects of liner shipping connectivity on the main east–west routes are average, but clear asymmetry emerges when analysing China's inward and outward trade flows separately.

The results of this paper show that the major east–west routes determine the baseline trade effects of liner shipping, demonstrate that some north–south trades such as those involving Oceania generate larger trade effects and confirm that the trade effects of liner shipping can be improved for some world regions such as South America and Africa.

This article offers an economic analysis of the main policy issues surrounding the proposed preferential trade area (PTA) between Japan, China, and South Korea. This initial assessment is done within the normative framework of customs union theory. Already, intra-regional trade between the three countries constitutes a high proportion of their total trade and is, in fact, cited as one of the main reasons for the PTA. As a consequence, trade creation following the PTA may not result in much new trade. However, it is expected that the PTA would lead to a vigorous growth of intra-industry trade, particularly in manufactured goods and components. Possibilities of trade diversion are real, but not insurmountable if the resulting preference structure is designed with a view to minimize disruption of trade with the rest-of-the-world.

The development of the current European economic area maritime cabotage market occurred when, at a policy level, the European Union forced the opening of its member-states cabotage markets to Community shipowners and extended this openness, in 1997, to the european free trade area countries. A two-tier cabotage market emerged, where a European economic area legislative framework co-exists with the legislative acts of each member-state. With such a unique background, this paper aims to investigate both the European economic area member-states and the rest of the world cabotage regimes and identify a list of reasons and policy measures used to implement cabotage policies.

By means of a desk research methodological approach, this paper analyses, from a geographical perspective, different countries’ cabotage policies and classifies them, and identifies in a systematically way a set of reasons and policy instruments that support each of chosen policies approach.

The outcome indicates that only a few countries promote free liberalised cabotage services and that most countries favour protectionist cabotage policies, whose governments can control the number of foreign vessels participating in these trades. Cabotage regimes have been categorised and the reasons behind both policies and respective policy instruments have been identified.

Quite often, researchers only focus on the cabotage policies of the European economic area countries, the USA, Australia, Japan and South Korea. This paper value rests on its ability to incorporate cabotage policies from other African, Asian and Latin American countries and to update existing information on the subject. Overall, this paper paves the way to broaden the cabotage knowledge.

This paper applies the decomposition method proposed by Wang et al. (2013), together with the multi-national input-output tables from World Input-Output Database (WIOD) to estimate the value-chain transition in East Asian production network. Specifically, we calculate and examine the domestic value-added absorbed abroad, foreign value-added embodied in country’s gross exports, and vertical specialization measures to explore the relative positions of major East Asian countries in the global production chain over the period of 1995-2011. The analyses are at country-aggregate, country-sector, bilateral-aggregate and bilateral-sector levels. Based on our results, we answer the important question of whether Taiwan and South Korea have used China’s production chains as an intermediary to re-export their products to other countries in the world. Furthermore, we answer the question that over the 1995-2011 periods, have Taiwan and South Korea exploited cheap labor from China to add value to their products before re-exported them to the rest of the world?

The world is changing and key change agents include climate change and scarcity of resources. The purpose of this paper is to address how New Zealand and tourism could address the future and generate appropriate strategic responses.

Using the process of scenario analysis and drawing upon recent research from the www.tourism2050.com project, this paper describes the circumstances, drivers, economic consequences and key decisions that New Zealand would have to take in order to position itself as an eco paradise. The background to the scenario presumes overarching behaviours in a cooperative world in which resources are scarce.

The scenario portrays a future of collective individualism, where a high degree of personal freedom exists but within the constraints of a world in which there is a scarcity of resources. A communitarian ethos drives policy making with an emphasis on efficient resource use and waste minimisation. New Zealand is a nation favoured by climate change. Environmental intellectual property is one of the nation's key resources and in the spirit of achieving a global environmental equilibrium these technologies are shared with the rest of the world. Life is simple. Competitive individualism is equated with excess and resource waste, while cooperation, harmony, and the continuation of a global cooperative psyche are seen as the foundation stones of the continued, relatively comfortable survival of humanity. Tourism is a luxury and activities are environmentally ethical. Visitors are well‐off, purposeful, highly respectful and careful to prove their worth.

Eco paradise represents the classic tale of a prisoner's dilemma in which decision makers and consumers ponder the betterment of humankind against individualism. The scenario concludes with a strategic map of the core decisions New Zealand's tourism industry would have to take. The significance of the paper is its portrayal of a possible future to industry leaders, researchers and stakeholders thereby facilitating decision making in order to adapt to this future.

The study performs an empirical test to assess the impact of the Pakistan-China Free trade agreement (FTA) on Pakistan, China, and the World's exports under homogenous and differentiated products. This study employs the modeling with Poisson specification with Poisson Pseudo-Maximum Likelihood method for the estimations. The results of empirical test show that the effect of FTA on the FTA and Non-FTA countries is greater in the differentiated product as compared to the homogenous product. Therefore, one of the most important policy implications provided by this study is that export enterprises need to concentrate on differentiated products as compare to the homogenous products after the implementation of the Pakistan-China FTA. Moreover, the previous literature concluded that Pakistan-China FTA was more beneficial for China as compared to Pakistan. However, according to this study, if Pakistani enterprises focus more on differentiated products as compared to homogenous products, then it will be equally beneficial for both Chinese and Pakistani enterprises. This study will contribute to the literature by considering the Bertrand competition between asymmetric countries and find out the effect of the FTA on these three countries. It considers China, Pakistan, and the Rest of the World as first, second, and third countries.

This paper examines the impact of regional and non-regional trade on economic growth using annual data from Economic Community of West African States (ECOWAS) member countries for the period 2007 to 2017.

Trade data were decomposed into regional (trade among ECOWAS Member States) and non-regional (trade between ECOWAS Member States and the rest of the world). We used the dynamic system GMM to estimate the models and introduced exchange rate, unemployment rate, population growth and gross capital formation as controlled variables.

The results revealed that the estimated coefficient of ECOWAS regional trade is statistically significant and positive in predicting growth, while the non-regional trade coefficient is negative and not statistically significant in predicting growth. Other predictors of growth introduced into the model as controlled variables, such as exchange rate, unemployment rate, population growth and gross capital formation, displayed mixed results. More importantly, population growth, unemployment and exchange rate depreciation hurt economic growth, while gross capital formation promotes economic growth.

The findings provide strong support in favour of the Krugman (1991) hypothesis that regional trade agreements (RTAs) are a better alternative to global trade.

Our decision to disaggregate ECOWAS trade is unique and influenced largely by the objective of the study, which is to establish the type of ECOWAS trade that is a good predictor of growth. The evidence from our findings support the theory that RTAs are a better catalyst to economic growth.

The European Union (EU) has notified its revised Generalized System of Preference (GSP) on 31 October, 2012 which will come into effect from 1 January, 2014. The EU is also in the process of, or contemplating, to sign Free Trade Agreements (FTAs) with many developing countries. Recently, EU has officially announced initiation of FTA negotiations with USA. Such preferential tariff arrangements could lead to significant erosion of preferences enjoyed currently by the Least Developed Countries (LDCs). In this backdrop, the main objective of the present study is to investigate the economic impacts originating from preference erosion in the EU market which could potentially affect LDCs in general, Bangladesh in particular. In this context, a dynamic computable general equilibrium (CGE) analysis has been developed by using the Global Trade Analysis Project (GTAP) model and database to explore the aggregate impact of the preferential erosion as well as sectoral implications for which different partial equilibrium analyses were used. The analysis evince that if the EU eliminates all tariffs for Pakistan, India and Vietnam, Bangladesh's real GDP could decrease by 0.27 percent whilst welfare loss could be to the tune of US$ 54 million. Total exports to the EU will be reduced by 0.18 percent; consequently, Bangladesh’s terms of trade and exports of textiles and clothing could be fall by about 1 percent. The product level disaggregated analysis using RCA and unit price of major items also indicate that a number of products including textiles and clothing will be confronted with formidable market access difficulties in the EU.

Liner connectivity plays an important role as a determinant in how a country is able to gain access to world markets. Liner shipping as the medium of seaborne transport for import and export of manufactured and semi-manufactured goods plays a significant part in international trade, which in turn potentially contribute towards the prosperity of a country and its surrounding region. Liner Shipping Connectivity Index (LSCI) is one of the most common benchmark to see how well connected a country in global trade, where it consists of five components, namely the number of ships, carrying capacity, ship size, services provided, and the number of companies that deploy container ships calling a country’s ports. This paper aims to tally from the most to the least which LSCI component contributes in improving the shipping connectivity with the most impact, in six Maritime South-East Asian countries, i.e., Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. By descriptive statistics, correlation analysis, and panel data, this paper finds that the country port’s capacity to accept larger ship size provides the most significant impact towards the improvement of the connectivity in the region. To attract companies to deploy largest ship, the improvement needs to be complemented with the capacity that can meet the expected volume, offering a variety of service, and good turnaround speed at the country’s port. The paper is expected to present not only indicative recommendations on which logistics connectivity initiative needs to be invested first, but also necessary proposals to develop a programme for building the region’s overall logistics industry.

Paper Code: SLC-206