A fuzzy set theory approach to flagging out: towards a new Chinese shipping policy |
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| Institution: | 1. Center for Maritime Economics and Logistics (MEL), Erasmus University Rotterdam, P.O. Box 1738 3000 DR, Rotterdam, Netherlands;2. School of Transportation, Wuhan University of Technology, People''s Republic of China;1. Lviv Polytechnic National University, 12 Bandery Street, 79013 L''viv, Ukraine;2. Institute for Condensed Matter Physics, 1 Svientsitskii Street, 79011 L''viv, Ukraine;1. School of Science, Hangzhou Dianzi University, Hangzhou, Zhejiang 310018, PR China;2. School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, PR China;1. Department of Electrical and Electronics Engineering, Atilim University, 06836 Ankara, Turkey;2. Department of Physics, Middle East Technical University, 06800 Ankara, Turkey;3. Virtual International Scientific Research Centre, Baku State University, 1148 Baku, Azerbaijan;1. Russell H. Morgan Department of Radiology and Radiological Science, Johns Hopkins Medical Institutions, 1800 Orleans Street, Baltimore, MD 21287, USA;2. Department of Medical, Surgical and Neurosciences University of Siena, Viale Bracci 10, 53100 Siena, Italy |
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| Abstract: | The paper seeks to model the benefits and costs involved in the decision to flag out, and to provide arguments for alternative policies, aiming to counteract this age-long phenomenon. Based on the analysis of the evolution of worldwide and Chinese flagging out, the emphasis in the paper is on the comprehensive effect assessment of flagging out and the required adjustment of Chinese shipping policy. To identify the determinants of such an adjustment, the paper introduces fuzzy set theory and related models, aimed to assess the economic effects of flagging out through the use of context-dependent economic and societal indicators (factors). The degree to which such indicators contribute to the choice of flag decision is assessed through a questionnaire survey. In parallel, and in the context of the determinant analysis of fuzzy models, the paper probes into the ‘policy competition’ and ‘government intervention’ policies to counteract flagging out. In the same context, a comparative analysis of shipping policies between China and traditional maritime countries is undertaken, in order to assess the current ‘openness’ of the Chinese shipping policy and explore possible policy alternatives. The paper concludes that the preferred policy alternative for China would be the establishment of second international ship register. |
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