Ship Open Registration System For Economic Analysis - On China's Flag Policy Orientation

The institution of ship open registry developed rapidly after World War II, many owners of traditional maritime countries flagged out because of economic or political reasons. Nowadays, this model of operation has dominated the international shipping market, and it will continue to expand steadily. This paper examines ship open registry by the application of economic theory, discloses its new features, and the problem of ship registry in China was also analysed.The first chapter summarized the basic concepts and theories of ship open registry, based on which later part was introduced. The 2nd chapter thought that economic globalization has promoted the international division of labor in shipping by enlarging the market capacity and cutting the transaction costs. The comparative advantages of different kind countries combined fully based on the institution of ship open registry. The internationalization of factors resources plays an important role in the operation strategies of owners. In view of ship open registry has became a mature industry, the concept of "open registry market" was devised in this dissertation, and then the contestability of this market was analyzed. Besides, the institution equilibrium model was applied to research the factors deployment between normal registry and open registry. The 3rd chapter pointed out the negative externality of ship open registry and reviewed its international regulation. Confronted with the seriousness of the problems of safety and pollution, several effective measures such as international conventions and port state control should be used to improve the technical condition of FOC ships. From the angle world welfare, we have to make the marginal cost of FOC ships equal to marginal social cost. The 4th chapter traced the change of ship registry institution in western European countries. Because of the effect of previous policies based on protectionism was not ideal, western European countries turned to institution innovation to find their way out, and then the second ship registry and tonnagetaxation were introduced. The final chapter argued the problem of flagging out in China, which is also serious nowadays. Many reasons such as the ability domestic shipyard, financial conditions and tax policies could account for this, of which the high rate of duty and value-added tax of imported ships maybe the most direct one. As a developing country, China is disproportionate to such a percentage of flagging out, which has negative effects on national economy. To encourage Chinese ships to flag in, we have to adjust and optimize our tax policies, and we can also introduce our own international ship registry.Linan (Industrial Economics) Directed by Prof. Zhanglijuan...