Impact of Geopolitical Conditions on Global Shipping Costs
摘要
This research aims to study the correlation between geopolitical conditions and global shipping cost. For this purpose, Dry Baltic Index and Geopolitical risk index of various countries are taken. The multivariate time series from 1985 to 2023 is prepared, tested for causality using Granger’s causality test. Subsequently, a Johansen co-integration test is conducted to examine the enduring connection among variables in the long run. The stationary series is then run through a VAR model to obtain the correlation between the GPR of countries and DBI of countries.