BDI’s CORRELATION WITH LEADING ECONOMIC INDICATORS

Theodore PELAGIDIS

Professor, University of Piraeus & NR Senior Fellow, Brookings Institution, US. 21, Lambraki Ave.,GR-18533

pelagidi@unipi.gr

Evgenia TSAHALI

University of Piraeus,

evgtsahali@yahoo.gr

Abstract

The aim of this paper is to investigate the correlation between the Baltic Dry Index (BDI) and certain leading economic indicators. We follow a different path than the existing literature follows. In particular, using a multi-linear regression method and defining the BDI index as a dependent variable, we seek to determine the multiple relations of the independent variables regarding the BDI value. We are looking at whether the BDI is a representative indicator not only for the shipping industry itself, but also for the whole economic and financial environment in which the shipping industry operates.

Keywords: Transportation Economics, General Financial Markets, Financial Securities

JEL classification: R4, R42, G1

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