Innovation and Port Logistics: Evidence on How Public Marine Terminals Prompt Unemployment Reductions in the Coast of Bolivar

Abstract

This study examines whether port terminals have contributed to the socioeconomic conditions of their vicinities in Colombia, particularly at the port city of Cartagena (PCC). Favourable patterns between socioeconomic indicators and cargo throughput were identified as increases in throughput occurred simultaneously with drops in departmental unemployment and monetary poverty. Also, regression analysis demonstrates that innovation is associated to higher cargo throughput, therefore, driving employment indirectly. However, while the relationship between throughput and unemployment was found to be negative, the total effect shown by the model seemed marginal. By analysing data from the logistics supply-chain at the industry level, spillovers on employment confirm the outputs of the regressions. Finally, a cross-sectional analysis using data from other port cities shows that there is potential to improve the benefits of terminals at the PCC, as comparable cities exhibit better socioeconomic conditions with the same level of cargo throughput.

Keywords: port city, economic development, logistics chain, sea transport, cargo throughput

JEL Classification: F16, R41, R11, O14, O32, I25