The Dynamic Effects of the Foreign Economic Shocks on the Korean Port Industry

Although the port industry is very important in Korean economy, there are few literature studies that shed light on macroeconomic implications of business cycles this industry. This paper examines roles played by foreign economic factors cycle Specifically, it aims to estimate impulse response seaborne freight volume due shocks economy and analyze contributions each shock considered variation volume. The structural FAVAR (SFAVAR) model was employed extract unobserved factors. estimates four parameters using one-step Bayesian Gibbs sampling method. findings study show activity statistically affects ports. real increased transportation for nearly one year. Following world inflation shocks, enhanced. However, impact disappeared after a Similarly, rise global liquidity shown encourage activity; nevertheless, declined five quarters. Moreover, increase interest rates exerted negative effect transportation. Furthermore, variance decomposition analysis shows 49.2% could be attributed activity. can contribute drawing useful establishing policy change environment such as economy.