Organization for Economic Co-operation and Development (2019)
This study discusses the features of the shipbuilding industry, particularly the determinants of newbuilding prices and production costs, and presents the concept and relevance of “time to delivery” of ship orders. Building upon this analysis the report discusses three examples of government interventions to illustrate through which channels these may impact the shipbuilding market. These three examples encompass preferential financing instruments, and two discretionary measures, notably government procurement policies and nonenforcement of national bankruptcy laws.
This paper argues that government interventions in the shipbuilding industry not only inhibit a level-playing field, but will do more harm than good by exacerbating economic downturns in this cyclical industry through two channels.