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 |
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Pages (from-to) | 503-525 |
Number of pages | 23 |
Journal | Oxford Bulletin of Economics and Statistics |
Volume | 82 |
Issue number | 3 |
DOIs | |
Publication status | Published - 1 Jun 2020 |