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The impact of the Panama Canal expansion on Panama’s maritime cluster

The impact of the Panama Canal expansion on Panama’s maritime cluster The Panama Canal is currently in the process of a major expansion effort. After the new set of locks is opened in 2016, significantly larger ships can traverse the Canal. The current lock system has been in place for over 100 years, even though the size of ocean-going vessels has expanded considerably. One impact is on Panama’s maritime cluster. It is expected that the expansion will result in greater demand for many of the goods and services provided by the cluster. This article examines the economic impact of the Canal expansion on Panama’s maritime cluster. Clusters of economic activity can result in economies of agglomeration and supply chain network effects. Without these economies and network effects, clusters would not have a competitive advantage over businesses that are not in a cluster. It is expected that with a larger cluster, both agglomerative economies and network effects will increase. But, which cluster components will grow and which will not be affected to a great extent? To what extent will bottlenecks appear? These are some of the questions that this article addresses. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Maritime Policy & Management Taylor & Francis

The impact of the Panama Canal expansion on Panama’s maritime cluster

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References (29)

Publisher
Taylor & Francis
Copyright
© 2016 Taylor & Francis
ISSN
1464-5254
eISSN
0308-8839
DOI
10.1080/03088839.2016.1140241
Publisher site
See Article on Publisher Site

Abstract

The Panama Canal is currently in the process of a major expansion effort. After the new set of locks is opened in 2016, significantly larger ships can traverse the Canal. The current lock system has been in place for over 100 years, even though the size of ocean-going vessels has expanded considerably. One impact is on Panama’s maritime cluster. It is expected that the expansion will result in greater demand for many of the goods and services provided by the cluster. This article examines the economic impact of the Canal expansion on Panama’s maritime cluster. Clusters of economic activity can result in economies of agglomeration and supply chain network effects. Without these economies and network effects, clusters would not have a competitive advantage over businesses that are not in a cluster. It is expected that with a larger cluster, both agglomerative economies and network effects will increase. But, which cluster components will grow and which will not be affected to a great extent? To what extent will bottlenecks appear? These are some of the questions that this article addresses.

Journal

Maritime Policy & ManagementTaylor & Francis

Published: Feb 17, 2016

Keywords: Panama Canal expansion; maritime cluster; gravity IO model; computable general equilibrium (CGM)

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