Impact of Exchange Rate Movements, Global Economic Activity, and the BDI Volatility on Loaded Port Cargo Throughput in South Korea

Abstract

This study examines the effects of exchange rate movements, global economic activity, and the volatility of the Baltic Dry Index (BDI) on South Korea's loaded port cargo throughput, based on monthly data for the period from January 2000 to October 2014. The results indicate that the BDI volatility has a negative effect on the loaded cargo throughput, while increases in the nominal exchange rate and in global economy activity have a positive effect. In addition, the error correction model results show that the error correction term is statistically significant with the negative sign.

Keywords

• Loaded Port Cargo Throughput
• Exchange Rate
• Global Economic Activity
• BDI Volatility