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The Exports Transmission Mechanism of Foreign Business Cycles to Australia

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  • Nicolas De Roos
  • Bill Russell

Abstract

The present paper examines the impact of foreign business cycles on Australian exports. After accounting for the effect of domestic activity on exports it has been found that foreign activity has at times had a large impact on Australian exports and, therefore, also on Australian GDP. Evidence is also found that the US and Japan have a high output elasticity of demand for Australia’s exports. Consequently, their business cycles have a larger impact on Australia’s exports than that suggested by their market shares of Australian exports.

Suggested Citation

  • Nicolas De Roos & Bill Russell, 2002. "The Exports Transmission Mechanism of Foreign Business Cycles to Australia," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 50-59, March.
    • Handle: RePEc:bla:ecorec:v:78:y:2002:i:240:p:50-59
    DOI: 10.1111/1475-4932.00038
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    References listed on IDEAS

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    Cited by:

    1. Renee Fry, 2004. "International demand and liquidity shocks in a SVAR model of the Australian economy," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 849-863.
    2. Ernst Juerg Weber, 2006. "Monetary policy in a heterogeneous monetary union: the Australian experience," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2487-2495.

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