The sectorial impact of commodity price shocks in Australia

Stephen Knop and Joaquin Vespignani

Economic Modelling, 2014, vol. 42, issue C, 257-271

Abstract: 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.

Keywords: Commodity prices; Commodity shocks; Australian economy (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: The sectorial impact of commodity price shocks in Australia (2014)
Working Paper: The sectorial impact of commodity price shocks in Australia (2014)
Working Paper: The sectorial impact of commodity price shocks in Australia (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:42:y:2014:i:c:p:257-271

DOI: 10.1016/j.econmod.2014.06.012

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