Transmission of a Resource Boom: The Case of Australia

Mardi Dungey; Renee Fry-Mckibbin; Vladimir Volkov

doi:10.1111/obes.12352

Transmission of a Resource Boom: The Case of Australia

Mardi Dungey, Renee Fry-Mckibbin^*, Vladimir Volkov

^*Corresponding author for this work

Centre for Applied Macroeconomic Analysis

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9 Citations (Scopus)

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
Number of pages	23
Journal	Oxford Bulletin of Economics and Statistics
Volume	82
Issue number	3
DOIs	https://doi.org/10.1111/obes.12352
Publication status	Published - 1 Jun 2020

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10.1111/obes.12352

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Transmission of a Resource Boom: The Case of Australia

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