Maritime Trade and Transport - HWWI
Maritime Trade and Transport - HWWI
Maritime Trade and Transport - HWWI
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
sources <strong>and</strong> to savings in energy consumption. The retrogressive growth of the crude oil<br />
trade went h<strong>and</strong> in h<strong>and</strong> with increased growth in trade with alternative energy sources. This<br />
development is far from over, so that the shares of the various regions in seaborne trade could<br />
shift substantially in the future. The strong boost in dem<strong>and</strong> for crude oil <strong>and</strong> other energy<br />
sources by aspiring newly industrialized countries such as China <strong>and</strong> India is not likely to<br />
arrest this development, but to intensify it.<br />
Noticeable effects on maritime trade are also to be expected in the case of a comprehensive<br />
liberalization of agricultural trade on a multilateral level. This would lead to a rise in Eu ropean<br />
agricultural imports – especially from North America <strong>and</strong> Brazil – <strong>and</strong> a corres pon ding increase<br />
in seaborne trade. A considerable liberalization potential exists, in addition, in numerous<br />
developing countries where international trade continues to be hampered by high tariff barriers.<br />
It is by no means certain that an accelerated reduction of trade barriers by the de veloping<br />
countries would have a positive effect on seaborne trade, since a rapid opening of domestic<br />
markets by the developing countries could impede their economic growth (see Box 2).<br />
Box 2<br />
Liberalization of trade <strong>and</strong> economic development<br />
The impact of trade liberalization on economic growth has been the subject of numerous<br />
studies. The simple basic models of trade theory emphasize the benefits to be<br />
expected for all countries from trade liberalization. To a great extent, however, they<br />
neglect the fact that the opening of domestic markets also means adjustment costs. The<br />
opening of domestic markets can indeed have a negative influence on a country’s economic<br />
growth, if the domestic production factors are not sufficiently mobile in moving<br />
between the import <strong>and</strong> export sectors. Another danger is that countries might specialize<br />
in economic activities that do not contribute to greater economic growth.<br />
Furthermore, reductions in tariffs are indeed associated with a loss of customs revenue.<br />
The results of various empirical studies lead to the conclusion that the effects of trade<br />
liberalization on the part of developing countries must be viewed in the context of the<br />
general institutional framework. Institutions that can establish property rights <strong>and</strong><br />
ensure adherence to the rule of law are necessary for coping with adjustment problems<br />
in the developing countries. Also necessary are institutions that can intervene with corrective<br />
actions if the market fails, which can help to stabilize markets <strong>and</strong> which are able<br />
to increase acceptance of the economic system. Liberalization of trade that does not take<br />
into consideration the institutional prerequisites of developing countries may therefore<br />
constitute a considerable risk for many developing countries. 22<br />
22 See Borrmann, Großmann, Koopmann. (2005).<br />
Berenberg Bank · <strong>HWWI</strong>: Strategy 2030 · No. 4<br />
35