The Relationship Study for Major Petrochemical Complexes and Liquid Cargo Ports by the Granger and Toda-Yamamoto Causality Test

Abstract

One of the world's major resources is crude oil, the most fundamental part of the industry. There is no place that does not use crude oil. Petroleum refining products and chemical production industrial products are produced through nearby petrochemical complexes and ports after importing crude oil. There would be a possible relationship among the petrochemical complexes and nearby regional ports working with liquid cargoes. To confirm these relations, Ulsan Port, Daesan Port, and Yeosu Gwangyang Port were selected for this study. A Vector Auto Regressive model using time series data was applied. A Unit Root Test was performed. The relationship was confirmed through the Granger and Toda Yamamoto Causality Test.