testing persistence in global shipping based on the Liner Shipping Connectivity Index (LSCI)
This study investigates persistence in the liner shipping connectivity index for 16
countries, namely, the G7, BRICS, and MINT countries from 2006Q1 to 2021Q1. Both
the autoregressive and fractional integration methods are used for the analysis
of break-adjusted and non-break-adjusted series. Findings from the study show
that the liner shipping connectivity index (LSCI) for more countries in the G7
economic group has lower persistence than for countries in the other economic
groups – MINT and BRICS – whether the series is adjusted for a structural break
or not, thus pointing to a possible quick recovery from a shock than elsewhere.
This shows that any disruption to global trade, as proxied by LSCI, will be suffered
more by developing countries than developed ones.