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• W581213450 abstract "In this research subsidies for shipping and the shipping sector's effect on the national economy have been studied. This has been done by combining economic and commercial aspects of shipping: the effects on the national economy depend on the nationality of the ship, and on the other hand the nationality of the ship (Finnish or foreign) is determined by the profitability of the Finnish flag. The profitability of the Finnish flag is partially determined by government policy, e.g. subsidies targeted to shipping, and shipping companies' commercial policy. The effects of government policy has been studied with the help of three policy alternatives: (1) increase of subsidies by increasing manpower subsidies and introducing tonnage tax, (2) as (1) and possibility to hire non-native sailors, and (3) present government policy. Manpower and other direct subsidies are targeted to increase the profitability of Finnish freighters so effects on the national economy depend on the situation of Finnish freighters. It is assumed that government policies studied do not alter the flag of passenger ships. The estimates of the profitability of the Finnish flag in different policy alternatives are based on calculations made by the Ministry of Traffic and Communications. These calculations have been made for several types of freight vessels. Cargo prices are determined by the international markets and the government's shipping policy does not have any effect on them. In the short term policy alternatives do not have any effect on the nonprice qualities of maritime shipping, like the fluency of shipping policy may lead to problems in the quality of the shipping. Vessels depreciate and non-suitable vessels (e.g. for ice conditions) may increase cargo costs and the fluency of shipping may be endangered. A foreign flag may also have an effect on the fluency of shipping during a crisis. In the short run the flag of the vessel does not have much effect on the national economy. In 1998 the market share of foreign vessels of shipping between Finland and other countries was about 60%. The most important economic factor, which does depend on the flag of the vessel, is the wages of the crew. These will be partially lost when the flag of the ship changes (outflagging) and in the present policy alternative domestic demand could decline maybe by 18-20 Mecus. The different policy alternatives have a minor effect on the government budget." @default.
• W581213450 created "2016-06-24" @default.
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• W581213450 date "1999-01-01" @default.
• W581213450 modified "2023-09-26" @default.
• W581213450 title "SHIPPING SECTORS SUBSIDIES AND ECONOMIC CONSEQUENCES" @default.
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