Introduction
The Dutch maritime trade has, over the years, been a catalyst in the economic development of the country. Maritime transport is an essential and dominant factor to global business, a backbone in the world economy. Sea trade influences economic growth in direct and indirect ways. It provides employment, results in openness of the economy, and encourage port development. This article will discuss how the Dutch maritime trade influences the economic growth in the Netherlands.
• The openness of the economy
Maritime trade in Dutch has led to the economy's opening up, which has resulted in economic development in the country. The Netherlands ranks as one of the world’s ten leading exporters. Most of the Dutch turnover is realized abroad.
Research shows that Dutch imports and exports grew by about 7.5 per cent annually over the last four decades, and maritime trade contributes significantly to the growth. Sea transport makes it possible to develop inter-countries shipping and business. As a result, Dutch can conveniently import the products they demand and sell their surplus produce to the larger world and earn income which is an input to the economy.
• Shipbuilding
The maritime trade led to the development of the Dutch shipbuilding industry that has been a significant contributor to the Netherlands' economy. The initiative involves manufacturing, repair, and maintaining commercial vessels such as offshore vessels, dredging vessels, and multipurpose vessels. With the expansion of this trade, inland shipping activities increased. As a result, the demand for this equipment Increased, hence rising of the industry.
The Netherlands is among the market leader of this equipment in Europe. It accounts for about 7 per cent of the European market. In 2017, the Dutch commercial shipping industry had an output value of 3.3 billion euros.
• Creation of employment
Employment is a crucial driver of economic growth in a region. The Dutch maritime trade employs thousands of people, which contributes immensely to the Netherlands GDP.
Netherland’s shipping industry is a high productivity industry. It comprises more than 12,000 companies and employs more than 200,000 skilled and non-skilled people. Overall, the maritime cluster industries generate approximately 2.5 per cent of employment in the Dutch.
• Port development
The Dutch maritime trade has led to Port development that plays an essential role in supporting economic development activities. Port development has significantly impacted the economic growth in the Netherlands. Ports earn taxes and customs duties that are a primary national source of income.
Port’s development usually accelerates the pace of growth in areas nearby the port. For instance, most of the world's famous cities came up due to a port's development.
Ports are also vital job generators. The cargo and shipping activities and services provide massive employment in port regions. Also, the industrial and transport clusters in Port areas have direct employment effects.
Conclusion
Dutch maritime trade is a critical factor in the economic growth and prosperity of the country. It has fueled the economy's openness, creating jobs a d raised the people's overall living standards. As a result, it keeps Dutch’s economy competitive, open and dynamic.