Weathering the Storm : Investing in Port Infrastructure to Lower Trade Costs in East Asia

The world economic crisis of 2008 presents clear challenges to prospects for economic growth in developing countries. This is particularly true for emerging economies in East Asia that have relied to a great extent over the past decade on export-led growth. What steps to facilitate trade promise a relatively strong return on investment for East Asia to help sustain trade and growth? The authors examine how port infrastructure affects trade and the role of transport costs in driving exports and imports for the region. They find that port congestion has significantly increased the transport costs to East Asia from both of the United States and Japan. The analysis suggests that cutting port congestion by 10 percent could cut transport costs in East Asia by up to 3 percent. This translates into a 0.3 to 0.5 percent across-the-board tariff cut. In addition, the estimates suggest that the trade cost reduction of investment in port infrastructure in East Asia that translates into higher consumer welfare would far outweigh the cost for physical expansion of the ports in the region.

Bibliographic Details

Main Authors:	Abe, Kazutomo, Wilson, John S.
Language:	English
Published:	World Bank 2009-04-01
Subjects:	AD VALOREM, AIR, AIR TRANSPORT, AIRPORTS, AVERAGE UTILIZATION, BERTH, BERTHS, BILATERAL TRADE, BONDS, BOTTLENECKS, CANALS, CARGO, CARGOS, CIF, COMMODITIES, COMMODITY, COMMODITY CODES, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPETITIVENESS, CONGESTION, CONGESTION COST, CONGESTION COSTS, CONGESTION INDEX, CONSUMER SURPLUS, CONSUMERS, CONTAINER BERTHS, CONTAINER CARGO, CONTAINER FACILITIES, CONTAINER SHIP, CONTAINER SHIPS, CONTAINER TERMINALS, CONTAINER VESSELS, CONTAINERIZATION, CONTAINERIZED CARGO, CONTAINERS, COST EFFICIENCY, COSTS OF CONGESTION, CUSTOMS, CUSTOMS VALUE, DEMAND CURVE, DEVELOPMENT ECONOMICS, DEVELOPMENT PROJECTS, DEVELOPMENT STRATEGY, DISCOUNT RATE, DREDGING, DRIVING, ECONOMIC COOPERATION, ECONOMIC FORECASTS, ECONOMICS RESEARCH, ELASTICITIES, ELASTICITY, EXCESS PROFITS, EXCHANGE RATES, EXPORTS, FARES, FISCAL POLICY, FREE TRADE, FREIGHT, FREIGHT COSTS, FREIGHT FORWARDERS, FREIGHT PAYMENTS, FREIGHT TRAFFIC, FREIGHT TRANSPORT, FUEL, FUEL COSTS, FUEL PRICES, FUTURE RESEARCH, GDP, GDP PER CAPITA, GOVERNMENT SUBSIDY, GROWTH RATE, INEFFICIENCY, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE PROJECTS, INFRASTRUCTURES, INLAND WATERWAYS, INTERNATIONAL TRADE, INTERNATIONAL TRANSPORT, LAND TRANSPORT, LARGE CONTAINER VESSELS, LENGTH OF ROAD, LOADING, MARGINAL COSTS, MARITIME AFFAIRS, MARITIME TRANSPORT, MULTIPLIER EFFECT, NATURAL RESOURCES, OCEAN FREIGHT, OCEAN TRANSPORT, PER CAPITA INCOMES, PORT AUTHORITIES, PORT AUTHORITY, PORT CAPACITY, PORT CONGESTION, PORT DEVELOPMENT, PORT EFFICIENCY, PORT EXPANSION, PORT FACILITIES, PORT INFRASTRUCTURE, PORT PERFORMANCE, PORT SERVICES, PORT USERS, PUBLIC PARTNERSHIPS, QUALITY OF TRANSPORTATION, QUALITY TRANSPORTATION, RAIL, RAILROADS, RAILWAY, RAPID INDUSTRIALIZATION, REGRESSION ANALYSIS, ROAD, SEA TRANSPORT, SEAPORTS, SHIPMENTS, SHIPPING, SHIPPING COMPANIES, SUPPLY CURVE, TANKERS, TAX, TEU, TOTAL COSTS, TRADE BARRIERS, TRADE DIVERSION, TRADE FACILITATION, TRADE LIBERALIZATION, TRADE POLICIES, TRAFFIC, TRAFFIC CONGESTION, TRANSIT, TRANSIT COUNTRIES, TRANSPARENCY, TRANSPORT, TRANSPORT COSTS, TRANSPORT DATA, TRANSPORT INFRASTRUCTURE, TRANSPORTATION, TRANSPORTATION COSTS, TRANSPORTATION NETWORKS, TRANSPORTATION SERVICES, TRUE, VEHICLE, WAITING TIME, WATER TRANSPORTATION, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090427112624 https://hdl.handle.net/10986/4105
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