(DP 1989-09) An Analysis of the Philippines Inter-Island Shipping Industry

Abstract

The paper provides an economic assessment of the state of inter-island shipping in the Philippines, with emphasis on the efficiency implications of the industry's structure and the regulatory policies supporting the industry's organization. It is argued that the maze of regulatory policies governing inter-island shipping severely restricts competition in the provision of shipping services, promotes rent-seeking activities at the expense of the users of these services of the general public, and creates bottleneck in the movement of goods and people.