Highlights This paper introduces the net flag-out ratio, accounting for ship flagging-out and for ship flagging-in. It examines, for the first time, the contribution of corruption and institutional measures as decisive factors in flag choice. We find that institutional factors do not explain the traditional flag-out measure but determine the net flag-out ratio. A country’s tax system, the ease of starting new business and the country’s corruption/transparency level determine the net flag-out ratio. A high level of transparency and of institutional performance and friendliness to business can maintain nationally owned ships and attract foreign owned ships under the national flag.
Abstract The paper introduces a new concept in ship registration, the net flag-out ratio (in contrast to the standard flag-out ratio) and examines the potential contribution of metrics of corruption and institutional measures as decisive factors in explaining flag choice. Context-related factors are also controlled and included in the study. The study uses a cross-sectional, multiple regression econometric approach. Focusing on a sample of the 33 largest ship owning countries, we find that institutional factors do not explain the traditional flag-out measure but determine the net flag-out ratio. Our findings indicate a potential effect of institutional performance/environment on ship registration.
Institutional performance and ship registration
2015-10-13
17 pages
Article (Journal)
Electronic Resource
English
Institutional performance and ship registration
Online Contents | 2016
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Engineering Index Backfile | 1932
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