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Dynamic volatility spillovers across shipping freight markets

Transportation Research Part E: Logistics and Transportation Review, ISSN: 1366-5545, Vol: 91, Page: 90-111
2016
  • 94
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  • 34
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Article Description

This paper examines the existence of dynamic volatility spillovers within and between the dry-bulk and tanker freight markets by employing the multivariate DCC-GARCH model and the volatility spillover index developed by Diebold and Yilmaz (2012, 2009). This methodology is invariant to ordering the variables when estimating a VAR model and allows for the disaggregation of volatility spillovers in total, directional, net and net pairwise. Results reveal the existence of large time-varying volatility spillovers across shipping freight markets, which are more intense during and after the global financial crisis.

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