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Global Trade: Testing Persistence in Global Shipping Based on the Liner Shipping Connectivity Index (LSCI)

Author

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  • Emeka Okoro Akpa

    (Babcock University Centre for Open, Distance and e-Learning (BUCODeL), Ilishan Remo, Ogun, Nigeria)

Abstract

This study investigates persistence in the liner shipping connectivity index for 16 countries, namely, the G7, BRICS, and MINT countries from 2006Q1 to 2021Q1. Both the autoregressive and fractional integration methods are used for the analysis of break-adjusted and non-break-adjusted series. Findings from the study show that the liner shipping connectivity index (LSCI) for more countries in the G7 economic group has lower persistence than for countries in the other economic groups - MINT and BRICS - whether the series is adjusted for a structural break or not, thus pointing to a possible quick recovery from a shock than elsewhere. This shows that any disruption to global trade, as proxied by LSCI, will be suffered more by developing countries than developed ones.

Suggested Citation

  • Emeka Okoro Akpa, 2022. "Global Trade: Testing Persistence in Global Shipping Based on the Liner Shipping Connectivity Index (LSCI)," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 20(2), pages 127-139.
    • Handle: RePEc:seb:journl:v:20:y:2022:i:2:p:127-139
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    File URL: http://asecu.gr/Seeje/issue39/issue39-akpa.pdf
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    References listed on IDEAS

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    1. Sowell, Fallaw, 1992. "Maximum likelihood estimation of stationary univariate fractionally integrated time series models," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 165-188.
    2. Bertho, Fabien & Borchert, Ingo & Mattoo, Aaditya, 2014. "The trade-reducing effects of restrictions on liner shipping," Policy Research Working Paper Series 6921, The World Bank.
    3. Jan Hoffmann & Naima Saeed & Sigbjørn Sødal, 2020. "Liner shipping bilateral connectivity and its impact on South Africa’s bilateral trade flows," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 473-499, September.
    4. Marco Fugazza & Jan Hoffmann, 2017. "Liner shipping connectivity as determinant of trade," Journal of Shipping and Trade, Springer, vol. 2(1), pages 1-18, December.
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    More about this item

    Keywords

    Liner Shipping Connectivity; Fractional Integration; G7; MINT; BRICS;
    All these keywords.

    JEL classification:

    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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