Shipping and investment incentives: a trilogyPart 3. The effectiveness of investment incentives for shipping—the UK experience 1950-1987

This paper concentrates on the determinants of investment and examines both theoretical and empirical work on the investment function. The major determinants are considered and a case study of the United Kingdom shipping industry in the period 1963-1987 is undertaken. The analysis is unable to find any real link between the value of the investment incentives packages available to the UK shipping industry and the size of the UK fleet during this period. The conclusion follows that while financial factors (e.g. favourable credit arrangements) or individual components (e.g. investment grants) of fiscal packages may influence the decision to invest, the total package has not affected the level of shipping investment in the manner expected.