Authors: Georgia Kobougia; Dimitrios Kyrkilis
Addresses: School of Social Sciences, Hellenic Open University, 18, Parodos Aristotelous Street, GR-26 335, Patra, Greece ' Department of Balkan, Slavic and Oriental Studies, University of Macedonia, 156 Egnatia Street, GR-546 36 Thessaloniki, Greece
Abstract: This paper examines the role of China in the development of the global maritime industry, focusing on the dry bulk market. The gradual reforms of the Chinese economy starting from the late 70s until the country's accession to the World Trade Organization in 2001 triggered an unprecedented growth of all sectors of the shipping industry, with the dry bulk sector being in the epicentre of the trading boom. China became one of the main driving forces of the demand and supply of ship transportation. An econometric model has been developed to test the validity of the theoretical analysis. Through a multiple regression model, a series of Chinese economy-related variables, potential drivers of the demand and supply of ship transportation, have been estimated as to their effect on the dry bulk market earnings using the OLS technique. Six of these factors, including the Chinese industrial production growth, the Chinese dry bulk seaborne imports, the Chinese-owned dry bulk fleet and the Chinese shipyards' output, are proved to be statistically significant determinants of the dry bulk vessels' earnings. The evaluation of the regression results provides sufficient comfort in relation to the validity of the conclusions.
Keywords: shipping; dry bulk market; ship transportation; multiple regression; China.
International Journal of Decision Sciences, Risk and Management, 2018 Vol.8 No.1/2, pp.22 - 39
Accepted: 19 Aug 2017
Published online: 26 Sep 2018 *