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The sectorial impact of commodity price shocks in Australia
journal contribution
posted on 2023-05-18, 02:29 authored by Knop, SJ, Joaquin VespignaniJoaquin VespignaniThis study reports that commodity price shocks predominantly affect the mining, construction and manufacturing industries in Australia. However, the financial and insurance sectors are found to be relatively unaffected. Mining industry profits and nominal output substantially increase in response to commodity price shocks. Construction output is also found to increase significantly, especially in response to a bulk commodity shock, as a result of increased demand for resource related construction. Increased demand for construction has a positive spillover effect to the parts of the manufacturing industry that supply the construction sector with intermediate inputs, such as the non-metallic mineral sub-industry. In contrast, other manufacturing sub-industries with only tenuous links to the resources sector such as textiles, clothing and other manufacturing, are relatively unresponsive to commodity price shocks
History
Publication title
Economic ModellingVolume
42Pagination
257-271ISSN
0264-9993Department/School
College Office - College of Business and EconomicsPublisher
Elsevier BV * North-HollandPlace of publication
NetherlandsRights statement
Copyright 2014 Elsevier B.V.Repository Status
- Restricted