2014
DOI: 10.1016/j.econmod.2014.06.012
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The sectorial impact of commodity price shocks in Australia

Abstract: It is found that commodity price shocks largely affect the mining, construction and manufacturing industries in Australia. However, the financial and insurance sector is 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 commodities shock, as a result of increased demand for resource related construction. Increased demand for cons… Show more

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Cited by 15 publications
(17 citation statements)
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“…Again, this may not necessarily reflect income or wealth effects and might simply be caused by the booming machinery, equipment and metal industries, which are major suppliers to the mining sectors. This finding is comparable with that of Knop and Vespignani (), who report that a 1 per cent bulk commodity price shock causes production of non‐metallic mineral products, machinery and equipment to increase significantly, whereas other manufacturing subsectors remain mostly unaffected.…”
Section: Results From the Single‐equation Modelssupporting
confidence: 85%
See 1 more Smart Citation
“…Again, this may not necessarily reflect income or wealth effects and might simply be caused by the booming machinery, equipment and metal industries, which are major suppliers to the mining sectors. This finding is comparable with that of Knop and Vespignani (), who report that a 1 per cent bulk commodity price shock causes production of non‐metallic mineral products, machinery and equipment to increase significantly, whereas other manufacturing subsectors remain mostly unaffected.…”
Section: Results From the Single‐equation Modelssupporting
confidence: 85%
“…() show that Chinese demand for Australian resources resulted in higher commodity prices and investment in the resources sector in Australia but had negative effects on the non‐resources sectors. Knop and Vespignani () report the co‐movement in mining, construction and part of the manufacturing sectors as a result of a commodity price shock.…”
Section: Introductionmentioning
confidence: 99%
“…The least impacted industries are the ones related to personal consumption. Knop & Vespignani (2014) Using structural vector autoregression models (SVAR), measure the effect of commodity price shocks on industries in Australia, from Jan-1993 till March-2013. Commodity index comprises of base metals, rural commodities and bulk commodities.…”
Section: Literature Reviewmentioning
confidence: 99%
“…A number of empirical studies have investigates the repercussions of oil price shocks on macroeconomic variables for the United States or across a set of countries, in which Australia is only examined as a comparison case (see, for example, Baumeister et al ., ; Peersman & Van Robays, ). Other studies are concerned with the macroeconomic effects of commodity price fluctuation, which is closely related to changes in Australia's terms of trade over the years of the mineral boom (Jääskelä & Smith, ; Bjørnland & Thorsrud, ; Dungey et al ., ; Knop & Vespignani, ). Earlier work at a more disaggregated level can be found in Ratti and Hasan () or Tcha and Wright ().…”
Section: Introductionmentioning
confidence: 99%