Transmission of a Resource Boom: The Case of Australia

Mardi Dungey; Renee McKibbin; Vladimir Volkov

doi:10.1111/obes.12352

Transmission of a Resource Boom: The Case of Australia

Mardi Dungey, Renee McKibbin, Vladimir Volkov

Research output: Contribution to journal › Article

Abstract

This paper presents evidence on the macroeconomic adjustment of a resource‐rich country to a resource boom using the effects of Chinese industrialization on Australia from 1988 to 2016. An SVAR model is specified, incorporating a proxy for Chinese resource demand and commodity prices to identify the effects of commodity supply and demand shocks on the Australian macroeconomy. We develop a multivariate historical decomposition to show how resource sector shocks lead the economy to deviate from a long‐run projection. The paper identifies four phases of the transmission of the resource boom before its conclusion in 2015.

Original language	English
Pages (from-to)	503-525
Journal	Oxford Bulletin of Economics and Statistics
Volume	82
Issue number	3
DOIs	https://doi.org/10.1111/obes.12352
Publication status	Published - 2020

Access to Document

10.1111/obes.12352

Cite this

@article{fac2958655a747b1bf00530777a550d0,

title = "Transmission of a Resource Boom: The Case of Australia",

abstract = "This paper presents evidence on the macroeconomic adjustment of a resource‐rich country to a resource boom using the effects of Chinese industrialization on Australia from 1988 to 2016. An SVAR model is specified, incorporating a proxy for Chinese resource demand and commodity prices to identify the effects of commodity supply and demand shocks on the Australian macroeconomy. We develop a multivariate historical decomposition to show how resource sector shocks lead the economy to deviate from a long‐run projection. The paper identifies four phases of the transmission of the resource boom before its conclusion in 2015.",

author = "Mardi Dungey and Renee McKibbin and Vladimir Volkov",

year = "2020",

doi = "10.1111/obes.12352",

language = "English",

volume = "82",

pages = "503--525",

journal = "Oxford Bulletin of Economics and Statistics",

issn = "0305-9049",

publisher = "Wiley-Blackwell Publishing Ltd",

number = "3",

}

TY - JOUR

T1 - Transmission of a Resource Boom: The Case of Australia

AU - Dungey, Mardi

AU - McKibbin, Renee

AU - Volkov, Vladimir

PY - 2020

Y1 - 2020

N2 - This paper presents evidence on the macroeconomic adjustment of a resource‐rich country to a resource boom using the effects of Chinese industrialization on Australia from 1988 to 2016. An SVAR model is specified, incorporating a proxy for Chinese resource demand and commodity prices to identify the effects of commodity supply and demand shocks on the Australian macroeconomy. We develop a multivariate historical decomposition to show how resource sector shocks lead the economy to deviate from a long‐run projection. The paper identifies four phases of the transmission of the resource boom before its conclusion in 2015.

AB - This paper presents evidence on the macroeconomic adjustment of a resource‐rich country to a resource boom using the effects of Chinese industrialization on Australia from 1988 to 2016. An SVAR model is specified, incorporating a proxy for Chinese resource demand and commodity prices to identify the effects of commodity supply and demand shocks on the Australian macroeconomy. We develop a multivariate historical decomposition to show how resource sector shocks lead the economy to deviate from a long‐run projection. The paper identifies four phases of the transmission of the resource boom before its conclusion in 2015.

U2 - 10.1111/obes.12352

DO - 10.1111/obes.12352

M3 - Article

SN - 0305-9049

VL - 82

SP - 503

EP - 525

JO - Oxford Bulletin of Economics and Statistics

JF - Oxford Bulletin of Economics and Statistics

IS - 3

ER -

Transmission of a Resource Boom: The Case of Australia

Abstract

Access to Document

Fingerprint

Cite this