Journal of Navigation and Port Research (한국항해항만학회지)

Korean Institute of Navigation and Port Research (한국항해항만학회)
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Maritime Business Cycles with Multiple Structure Changes

  • Kim, Hyunsok (Division of Economics, Pusan National University)
  • Received : 2020.09.28
  • Accepted : 2020.10.19
  • Published : 2020.10.31
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Abstract

In this paper we examined a novel extension of the convergence empirics for the maritime business cycle which considers structure breaks and/or changes. To provide theoretical justification, the convergence hypothesis uses the relaxed assumption to technology shocks. Based on the recent empirical results provided by Kim and Chang (2020), we consider nonlinear dynamics that capture the properties on structural changes in the equilibrium adjustment process. This approach bridges the gap between the theoretical framework and empirical specifications. In particular, we applied the convergence hypothesis to the multiple structure change model for the maritime business cycle. Our application to the maritime data showed support of the convergence hypothesis allowing multiple structure changes during the high volatile period and offers additional insight into the forecasting maritime business cycles.

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