Affiliation:
1. SULEYMAN DEMIREL UNIVERSITY
Abstract
The Baltic Dry Index (BDI) is the most critical indicator taking the pulse of maritime trade. Hence, it is essential to determine the macroeconomic variables that affect the BDI, which is a solid indicator for global economic activities in maritime transport.
This research paper studies the association between macroeconomic indicators and the BDI. For this purpose, the Toda-Yamamoto approach was performed to examine the causal association between macroeconomic variables and the BDI. The Lee-Strazicich (LS) unit root test was applied based on Model C (break) to determine the stationary of the model series.
The research's findings shed significant light on the relationship between the BDI and macroeconomic variables. According to the Toda-Yamamoto causality test results: BDI has a two-way relationship with S&P 500 and MSCI World indexes; besides, there is a one-way relationship from €/$ parity to BDI and from BDI to BCOM index.
Publisher
Yonetim ve Ekonomi Arastirmalari Dergisi - Journal of Management and Economics Research
Reference47 articles.
1. Açık, A., & Başer, S.Ö. (2021). “Interaction Between Commodity Prices and Freight Rates: Content Analysis of The Dry Bulk Market Reports”. İzmir Sosyal Bilimler Dergisi, 3(1): 39-48. doi: 10.47899/ijss.20213104
2. Açık, A., & Başer, S.O. (2018) “Baltık Kuru Yük Endeksi Etkin Mi?”, Journal of Yasar University, 13(50): 140-149. doi: https://doi.org/10.19168/jyasar.368149
3. Açık, A., Okutucu, Ö., Efes, K.Ö., Başer, S.Ö. (2021) “Analyzing The Impact of Interest Rate on Dry Bulk Freight Market with Time-Varying Causality Method”, Journal of Research in Economics, Politics & Finance, 6(2): 403-417. doi: 10.30784/epfad.798092
4. Alimi, S.A., Ofonyelu, C.C. (2013) “Toda-Yamamoto Causality Test Between Money Market Interest Rate and Expected Inflation: The Fisher Hypothesis Revisited”, European Scientific Journal, 9(7): 125-142.
5. Alizadeh, A.H., & Talley W.K. (2011) “Microeconomic determinants of dry Bulk Shipping Freight Rates and Contract Times”, Transportation, 38(3): 561-579. doi: https://doi.org/10.1007/s11116-010-9308-7