How Port Integration Policy Affects Total Factor Productivity in Chinese Ports: Empirical Evidence from 2005 to 2018

The Chinese government has been promoting its 'port integration' policy since 2011, hoping to reduce competition and increase resource utilisation. This might affect the productivity of Chinese ports. We analysed the impacts of such policy on the total factor productivity (TFP) of Chinese ports with different attitudes toward cooperation. Pro-cooperative ports in the major clusters are found to be negatively affected, whereas other pro-cooperative ports can benefit from the policy. As the former handle most cargo trade-volume, the negative effects outweigh the benefits from the latter. Therefore, the government should be cautious about promoting its policy on a national level.