Title: A non-structural approach to assess competitive conditions in container liner shipping market: 2009-2014
Authors: Enna Hirata
Addresses: Graduate School of Business Administration, Kobe University, 2-1, Rokkodai-cho, Nada, Kobe 657-8501, Japan
Abstract: This paper aims to assess the demand elasticities and competitive conditions in container liner shipping (henceforth: CLS) market. Using a dynamic model, the regression results reveal that the degree of competition measured by Panzar-Rosse (P-R) H statistic varies from 0.37 to 0.97 for the period of 2009 to 2014. It implies that CLS market can be described as displaying monopolistic competitive behaviour. The conclusion is consistent with previous studies conducted for earlier periods; moreover, the increasing trend of P-R H statistic value implies increasing degree of competition in the industry. The findings contribute to the understanding of theoretical explanation of competitive condition in latest CLS market. Unlike other studies, this paper establishes a dynamic model that makes it possible to measure both short-run and long-run effects.
Keywords: container liner shipping; CLS; shipping market; demand elasticities; competitive conditions; monopolistic; competitive; competition degree; non-structural; Panzar-Rosse h-statistic; dynamic model; shipping; transport; logistics; short-run effects; long-run effects.
International Journal of Shipping and Transport Logistics, 2018 Vol.10 No.5/6, pp.500 - 513
Received: 03 Nov 2016
Accepted: 20 Jul 2017
Published online: 28 Sep 2018 *