The pursuit of better performance by the local government can influence the investment decision-making related to port expansion. This paper compares the ceilings at which the port enterprise and the local government would stop making investments. To achieve this, the benefits to the port enterprise and the local government are measured over a given time period. An empirical study investigating how a port would respond if a rival port uses a type of capacity investment strategy is conducted for two major ports in Liaoning. The time at which the local government and the port enterprise would stop making investments and the final equilibrium are developed using the data from 2010. From the empirical results, it was found that investment in port capacity contributes greatly to the local government’s performance. Meanwhile, different investment ceilings are discovered for the port enterprise and the local government. This research is meaningful for discussing the institutional relationship between the local government and the port enterprise in China’s current decentralized port governance system.

Item Type:	Refereed Article
Keywords:	Port reform; performance of local government; port governance; port investment; port competition; discrepant ceilings
Research Division:	Economics
Research Group:	Applied economics
Research Field:	Transport economics
Objective Division:	Defence
Objective Group:	Defence
Objective Field:	Logistics
UTAS Author:	Shi, W (Dr Wenming Shi)
ID Code:	112455
Year Published:	2016
Web of Science® Times Cited:	30
Deposited By:	Maritime and Logistics Management
Deposited On:	2016-11-11
Last Modified:	2019-09-18
Downloads:	0