This paper shows the possibility that, as a simple average, BDI occasionally over- or under-states the status of global dry bulk freight market. In order to overcome this shortcoming, this paper suggests an alternative method of calculating new index by using a common stochastic trend model. This econometric approach to understanding the dynamics of dry bulk freight markets not only provides ne…
The relationship between co-integration and error correction models, first suggested in Granger (1981), is here extended and used to develop estimation procedures, tests, and empirical examples. If each element of a vector of time series x, first achieves stationarity after differencing, but a linear combination a'x, is already stationary, the time series x, are said to be co-integrated with co…
The economic rise of China and its implications for the rest of the world are well discussed in the literature. However, the literature on the rise of Chinese ports and how they could impact the ports in East Asia is very limited. Moreover, although there are few studies on the effect of Chinese port growth on the ports in East Asia, these are theoretical, descriptive or do not cover all major …
The present study investigates the excess return dynamics between time charter (t/c) trip charters and their underlying voyage charters in the dry bulk market. Using a weekly data set over the period January 2003 to January 2014, we first examine the existence of a long-term co-integrating relationship between trip charters and their respective voyages expressed in Time Charter Equivalents. The…