Proceedings of ICLT 2017
IMPACT OF MARITIME CONNECTIVITY ON ECONOMIC GROWTH
Mark Goh; Naveen Kumaran K
NUS Business School and The Logistics Institute-Asia Pacific, Singapore; National Institute of Technology- Trichy, India
International Conference on Logistics & Transport 2017, Bangkok, Thailand, pp. 203-211
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Abstract
Purpose: Much have been mentioned of the linkage between trade and transport connectivity on economic development. As such, this paper seeks to investigate the impact of maritime connectivity on the economic development of a country in the context of ASEAN specifically Singapore. Our intent is to determine if there is indeed a direct linkage between the constructs of maritime connectivity and economic growth. Design/methodology/approach: We adopt a system dynamics approach to understand the causal loops influencing economic development through industry growth, the multiplier effects, and maritime connectivity. For the data, we will draw on public domain information available on the web. The software AnyLogic will be employed for our analysis in this paper. In the analysis, GDP growth is taken as the dependent variable while factors such as import taxes, labor productivity, and connectivity index (outbound and inbound) are treated as the independent variables. Findings: Our results show that as maritime connectivity improves, economic growth proxy-ed by more GDP per year follows. Research limitations/implications: The quality of this effort depends very much on the quality and extent of data available in the public domain. Practical implications: Our work serves to inform policy makers, business strategists on how to string maritime connectivity into greater trade impact and hence the economic development for a country in ASEAN. Next, we can through, systems dynamics, appreciate the effects of vertical and horizontal integration between different segments of the economic cogwheel. Originality/value: The paper brings to focus the importance of effective maritime connectivity for the economic development of a nation in a quantitative and statistical manner through the simulation of a real world system. This work serves to inform policy makers, business strategists on how to string maritime connectivity into greater trade impact and hence the economic development for a
Keywords
AnyLogic; Economic growth; Maritime connectivity; Singapore Paper Type: Research paper
Citation
Mark Goh; Naveen Kumaran K (2017). IMPACT OF MARITIME CONNECTIVITY ON ECONOMIC GROWTH. Proceedings of the International Conference on Logistics & Transport (ICLT 2017), Bangkok, Thailand, pp. 203-211.