TY - JOUR
T1 - The impacts of maritime piracy on global economic development
T2 - The case of Somalia
AU - Fu, Xiaowen
AU - Ng, Adolf K.Y.
AU - Lau, Yui Yip
N1 - Funding Information:
This study is funded by the Hong Kong Polytechnic University, Hong Kong, China (project code: G-U812). We thank the anonymous referees for their invaluable advices. Usual disclaimers apply.
PY - 2010/12
Y1 - 2010/12
N2 - This paper investigates the impacts of maritime piracy on global economic development. Calibrated with data between 2003 and 2008, we model shipping demands and competition in the Far East-Europe container liner shipping service and investigate the economic welfare loss effects due to reduced volumes of trade and shipping, as well as efficiency loss due to geographical re-routing of shipping networks which would be otherwise uneconomical. The substantial economic loss simulated from our model indicates that, even from purely the perspective of economic interests, more efforts from the international community should be dedicated to tackle maritime piracy.
AB - This paper investigates the impacts of maritime piracy on global economic development. Calibrated with data between 2003 and 2008, we model shipping demands and competition in the Far East-Europe container liner shipping service and investigate the economic welfare loss effects due to reduced volumes of trade and shipping, as well as efficiency loss due to geographical re-routing of shipping networks which would be otherwise uneconomical. The substantial economic loss simulated from our model indicates that, even from purely the perspective of economic interests, more efforts from the international community should be dedicated to tackle maritime piracy.
UR - https://www.scopus.com/pages/publications/78649703458
U2 - 10.1080/03088839.2010.524736
DO - 10.1080/03088839.2010.524736
M3 - Article
AN - SCOPUS:78649703458
SN - 0308-8839
VL - 37
SP - 677
EP - 697
JO - Maritime Policy and Management
JF - Maritime Policy and Management
IS - 7
ER -