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Maritime Trade and Transport - HWWI

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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

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