The Dynamic Impacts of the Global Shipping Market under the Background of Oil Price Fluctuations and Emergencies. (11th February 2021)

• Record Type: Journal Article
• Authors: Chen, Zihan; Zhang, Xiaokong; Chai, Jian
• Other Names: Liu Xueyong Academic Editor.
• Is Part Of: Complexity. Volume 2021(2021)
• Publication Date: 2021-02-11
• Subjects: Chaotic behavior in systems -- Periodicals; Complexity (Philosophy) -- Periodicals; 003
• DOI: 10.1155/2021/8826253
• Languages: English
• ISSNs: 1076-2787

Abstract

Abstract : With growing uncertainty about the evolution of the global landscape, it is of great practical significance to explore the nonlinear dynamic adjustment relationship among the world oil market, the global bulk shipping market, the stock market, and economic growth in China. This paper applied the TVP-SV-VAR model and selected quarterly data from 1998 to 2020 to explore the dynamics. The results indicated that the impact intensity of BDI on China's economy had a "positive" to "negative" change in different lag periods. This was mainly due to the fact that the negative impact of higher freight prices on China's economy outweighed the positive impact of higher trade volumes on China's economy. The impact intensity of BDI on GDP had a distinct medium- to long-term effect. A positive BDI shock had a dampening effect on stock prices in the short and medium term, while a positive BDI shock could promote stock market prosperity in the long-term perspective. The impulse responses of SSE and GDP to BDI showed that the external shipping market shocks to China's stock market and economic growth gradually became smaller over time. For impulse response at three different time points, the impact intensity of the BDI to GDP varied at different time points, with the largest shock during the financial crisis in 2008, followed by the shock during the oil price crash in 2014, and the smallest during the COVID-19 epidemic. This demonstrated that the external shipping market's influence on Chinese economic growth and stock market has gradually weakened over time, illustrating the enhancement of Chinese risk-resilience capacity.