Trade effects of port automation: Case of Chittagong sea port automation in Bangladesh

Khan, Mohammed Robayet (2014). Trade effects of port automation: Case of Chittagong sea port automation in Bangladesh Master's Thesis, School of Economics, The University of Queensland.

       
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Author Khan, Mohammed Robayet
Thesis Title Trade effects of port automation: Case of Chittagong sea port automation in Bangladesh
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2014-07-04
Thesis type Master's Thesis
Supervisor Juyoung Cheong
Total pages 68
Language eng
Subjects 14 Economics
Formatted abstract
As a consequence of the approaching “zero tariff” condition by the world trading order, trade facilitation has become the next crucial trade policy issue especially for the developing countries. Trade facilitation is deemed to affect international trade positively through reducing trade costs. As 80% of volumes and 70% of values of the international trade are handled by the maritime ports all over the world, improving sea port efficiency is considered as one of the most effective trade facilitation devices to reduce trade costs. In the literature, a number of studies examined the effects of port efficiency on trade but most of them are based on cross-country evaluations, which typically suffer from the identification problem due to endogeneity. There is hardly any program specific study in the literature examining the effects of port efficiency on trade, which could produce unbiased estimates of such trade interventions overcoming the identification problem. This thesis investigates the effects of the automation of the Chittagong sea port (CSP), the prime maritime port of Bangladesh, on the firms’ exports using CSP. This is a maiden effort in the literature to evaluate impacts of the port automation on exports. With the structural change in the last quarter of 2010, this thesis uses newly collected firm level industrydestination specific export data of the ports for 2008-2012 period to examine the changes in firms’ exports using CSP during the post automation period with respect to those of the other port, Mongla sea port (MSP). Employing a DID model in the standard gravity framework, this study finds that the automation of CSP resulted into 9.20% increase in average exports of CSP relative to those of MSP during the post automation period 2011- 2012. Results are robust across different specifications. There is also evidence of improvement in the extensive and intensive margins in case of CSP during the post automation period.
Keyword Trade facilitation
port automation
exports
DID
Gravity Model

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
 
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