The Impact of Maritime Transportation Instability on International Trade Instability: Combination Spatial Panel data Econometric Approach and Wavelet Smoothing

The main objective of this study is to evaluate the impact of maritime transportation instability on international trade instability based on wavelet smoothing and spatial panel data econometric method during the period 1990-2012. The results showed that the spatial effects have an impact on international trade instability. So that a sudden 100 percent increase in international trade in the neighboring countries will reduce 38 percent of trading in own countries. Evaluation of the results of spillovers elasticity of international trade instability showed that maritime transportation did not have a significant impact on international trade fluctuations and geographical concentration is the most important variable of instability in international trade.