The Value of Connectivity: Evolution of Global Shipping Services Networks and the Dynamics of Global Value Chains

Abstract

With the rapid development of economic globalization, international shipping is playing a more critical role in global economic activities. The original port facilities and service capacity are difficult to adapt to the new situation of international shipping development. How to speed up the construction of interconnected global shipping service network has become an important global issue. Based on the data of shipping services networks and the global value chain of major economies, this paper discusses the impact of global shipping services networks on the dynamics of global value chain of an economy. The empirical result shows that the improving global shipping services network can help to significantly promote the labor division of global value chain. The sub sample test shows that the promoting effect is more significant in the samples of developed economies compared with developing economies. The global shipping services networks can promote the upgrading of global value chain by the channels increasing human capital accumulation and enhancing innovation ability. It is necessary to expand maritime channel, improve inter-modal channel, strengthen shipping service cooperation mechanism between different ports, and build up interconnected and efficient international shipping service networks.