This 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

Item Type:	Refereed Article
Keywords:	Commodity prices;
Research Division:	Economics
Research Group:	Applied economics
Research Field:	Applied economics not elsewhere classified
Objective Division:	Economic Framework
Objective Group:	Macroeconomics
Objective Field:	Macroeconomics not elsewhere classified
UTAS Author:	Vespignani, J (Associate Professor Joaquin Vespignani)
ID Code:	93582
Year Published:	2014
Web of Science® Times Cited:	7
Deposited By:	TSBE
Deposited On:	2014-08-08
Last Modified:	2017-12-14
Downloads:	0