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http://hdl.handle.net/1893/32035| Appears in Collections: | Accounting and Finance Journal Articles |
| Peer Review Status: | Refereed |
| Title: | The effects of geopolitical risk and economic policy uncertainty on dry bulk shipping freight rates |
| Author(s): | Drobetz, Wolfgang Gavriilidis, Konstantinos Krokida, Styliani-Iris Tsouknidis, Dimitris |
| Contact Email: | konstantinos.gavriilidis@stir.ac.uk |
| Keywords: | Geopolitical risk economic policy uncertainty shipping freight rates Bayesian VAR JEL classification: C1, D80, R40 |
| Issue Date: | 2021 |
| Date Deposited: | 1-Dec-2020 |
| Citation: | Drobetz W, Gavriilidis K, Krokida S & Tsouknidis D (2021) The effects of geopolitical risk and economic policy uncertainty on dry bulk shipping freight rates. Applied Economics, 53 (19), pp. 2218-2229. https://doi.org/10.1080/00036846.2020.1857329 |
| Abstract: | We examine the effects of geopolitical risk (GPR) and economic policy uncertainty (EPU) on shipping freight rates using a Bayesian VAR model. A positive shock to global GPR has an immediate positive, but gradually diminishing, effect on dry bulk shipping freight rates. This effect is driven by global rather than country-specific GPR shocks. Positive shocks to EPU indices for the U.S., Brazil, and China trigger a negative response of dry bulk shipping freight rates that builds gradually over several months. Historical cumulative effects of both GPR and EPU shocks on freight rates can be large and of different signs during different subperiods. Our results are important for both shipowners and charterers when fixing chartering strategies and prioritizing investments in newbuilding or secondhand vessels. |
| DOI Link: | 10.1080/00036846.2020.1857329 |
| Rights: | This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study. This is an Accepted Manuscript version of the following article, accepted for publication in Applied Economics. Drobetz W, Gavriilidis K, Krokida S & Tsouknidis D (2020) The effects of geopolitical risk and economic policy uncertainty on dry bulk shipping freight rates. Applied Economics. https://doi.org/10.1080/00036846.2020.1857329. It is deposited under the terms of the Creative Commons Attribution-NonCommercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. |
| Licence URL(s): | http://creativecommons.org/licenses/by-nc/4.0/ |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| DGKT R1 09-10-2020.pdf | Fulltext - Accepted Version | 1.28 MB | Adobe PDF | View/Open |
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