Endogeneity of commodity price in freight cost models

• Main Author: LIM, Kian Guan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Freight rate; Iron ore price; Endogeneity; Panel regression; Agribusiness; Finance and Financial Management; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6826; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7825/viewcontent/Endogenity_2021_av.pdf
• Institution: Singapore Management University

In this paper, we answer a novel question on how the value of goods carried can affect the freight cost. We focus on the issue based on a more specialized freight market involving transport of seaborne iron ore from mining ports to Qingdao in China during the period 2014 to 2019. We construct simult...