HIGHLY DISAGGREGATED MODELS OF SEABORNE TRADE. AN EMPIRICAL MODEL FOR BILATERAL DRY-CARGO TRADE FLOWS IN THE WORLD ECONOMY

The aim of this paper is to estimate an empirical model of bilateral dry-cargo seaborne import flows in the international economy. Seaborne trade elasticities are estimated using the constant ratio of elasticities of substitution homogeneous/homothetic (CRESH) function--a function that has had limited use. Highly disaggregated data on volumes of seaborne trade, published by the United Nations, distinguish 5 types of cargo based on type of ship used for transportation and 30 trading regions based on the major sea-lanes used by ships internationally. Multistage budgeting is necessary to make the problem of estimation tractable. An empirical model for dry-bulk cargo is estimated according to CRESH function. Estimation of bilateral export price elasticities allows comparison of the degree of competition in each import market over export regions and among import markets themselves. Risk-averse ship owners may use the comparison to operate in world ship-lanes with low degree of competition.

  • Availability:
  • Corporate Authors:

    Taylor & Francis

    4 Park Square, Milton Park
    Abingdon,   United Kingdom  OX14 4RN
  • Authors:
    • Kavussanos, M G
  • Publication Date: 1996-1

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00724395
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 6 1996 12:00AM