Liner shipping connectivity and its impact on bilateral trade flow of South Africa: A Quasi-Maximum Likelihood (QML) estimation of panel data with random effects
This paper analyses the impact of the liner shipping bilateral connectivity on bilateral trade flow of South Africa with the rest of the world. The bilateral connectivity is measured by way of five components that are the number of transshipments, the number of common direct connections, the geometric mean of the number of direct connections, the level of competition on services, and the size of the largest ships on the weakest route between South Africa and its trading partner. In addition to these five variables, the data for real income of South Africa and the real income of its 148 trading partners was collected from 2006-2016. This study applies the Quasi-Maximum Likelihood (QML) method to estimate the dynamic panel data with random effect. The results show that the real income of South Africa, the real income of its trading partners, the number of common direct connections, and the level of competition on services have a positive, while the number of transshipments has a negative and significant effect on bilateral trade flow of South Africa.
Publisert i International Association of Maritime Economists Conference (IAME 2018), 2018
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