This research is designed to analyze the factors affecting the performance of shipping services industry, and its impact on the economic growth. The Factors are banking, port infrastructure, business climate of shipping industry, and human reso urces quality. This research used an explanatory method that described causal relationships among variables through hypothesis testing. Data compiled in the form of time-series during the years 1986-2015. The research model was formulated as Cobb-Douglas’s production function model was analyzed, recursively using linear regression through the Ordinary Least Square (OLS) method. The research findings are: (1) Banking, port infrastructure, business climate of shipping industry, and
human resource quality significantly influence the performance of shipping service industry. These finding suggests that the integration of the factors play an important role in improving the performance of the shipping service industry. Partially, the performance is more determined by banking, port infrastructure, and business
climate of the shipping industry; and (2) the performance of the shipping service industry has no significant positive impact on economic growth. These finding suggests the low level of the performance contribution and inter-sectors integration to boosting economic growth.
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