Abstract
In this paper we analyze the effects of the change of ownership of the Greek port of Piraeus on international trade flows. The Chinese shipping line Cosco purchased the port authority of Piraeus in 2016 while already owning two of the three container terminals. Using vessels tracking data we show evidence that after the purchase, port traffic sharply increased the share of Cosco within container shipping users of the port. Estimating the effect of changing shipping costs on trade requires to reveal the routes of trade been country pairs: we investigate and expose substantial heterogeneity in the routes travelled by different ship operators, for given port pairs. Our gravity estimations identify a trade creation effect of the port of Piraeus after the purchase, that is specific to each operator. General equilibrium analyzes the impact of Piraeus becoming Chinese on trade flows and on countries’ welfare.
The seminar will be held in room 1249 (12th floor) at Eilert Sundts Hus. The address is Moltke Moes vei 31.