IDEAS home Printed from https://ideas.repec.org/a/rmk/rmkbae/v2y2015i1p1-19.html
   My bibliography  Save this article

The exposure of technology and knowledge intense sectors to the business cycle

Author

Listed:
  • Werner Hölzl
  • Serguei Kaniovski
  • Andreas Reinstaller

Abstract

This paper studies the business cycle sensitivity of industries using different industry groupings. The results show that technologically intense industries are heavily affected by business cycles. While the overall importance of business cycles for long-run growth seems to be rather limited, we observe for industries with high technology intensity that business cycles may have persistent long-run effects on sectoral performance.

Suggested Citation

  • Werner Hölzl & Serguei Kaniovski & Andreas Reinstaller, 2015. "The exposure of technology and knowledge intense sectors to the business cycle," Bulletin of Applied Economics, Risk Market Journals, vol. 2(1), pages 1-19.
    • Handle: RePEc:rmk:rmkbae:v:2:y:2015:i:1:p:1-19
    as

    Download full text from publisher

    File URL: https://www.riskmarket.co.uk/bae/journals-articles/issues/the-exposure-of-technology-and-knowledge-intense-sectors-to-the-business-cycle/?download=attachment.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-673, September.
    2. António Afonso & Davide Furceri, 2009. "Sectoral Business Cycle Synchronization in the European Union," Economics Bulletin, AccessEcon, vol. 29(4), pages 2996-3014.
    3. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, January.
    4. Holzl, Werner & Reinstaller, Andreas, 2007. "The impact of productivity and demand shocks on structural dynamics: Evidence from Austrian manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 18(2), pages 145-166, June.
    5. Susanto Basu, 1996. "Procyclical Productivity: Increasing Returns or Cyclical Utilization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 719-751.
    6. Aghion, Philippe & Angeletos, George-Marios & Banerjee, Abhijit & Manova, Kalina, 2010. "Volatility and growth: Credit constraints and the composition of investment," Journal of Monetary Economics, Elsevier, vol. 57(3), pages 246-265, April.
    7. Francis, Neville & Ramey, Valerie A., 2005. "Is the technology-driven real business cycle hypothesis dead? Shocks and aggregate fluctuations revisited," Journal of Monetary Economics, Elsevier, vol. 52(8), pages 1379-1399, November.
    8. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    9. Michael Peneder, 2007. "A sectoral taxonomy of educational intensity," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(3), pages 189-212, July.
    10. Annika Alexius & Mikael Carlsson, 2005. "Measures of Technology and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 299-307, May.
    11. Werner Hölzl & Andreas Reinstaller, 2005. "Sectoral and Aggregate Technology Shocks:Is There a Relationship?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 45-72, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. W. Hölzl & S. Kaniovski & Y. Kaniovski, 2019. "Exploring the dynamics of business survey data using Markov models," Computational Management Science, Springer, vol. 16(4), pages 621-649, October.
    2. Franz R. Hahn & Werner Hölzl, 2012. "Effects of the New Capital Requirements of Basel III on the Financing of Small and Medium-sized Enterprises in Austria," Austrian Economic Quarterly, WIFO, vol. 17(3), pages 168-186, August.
    3. Charis Vlados & Dimos Chatzinikolaou & Fotios Katimertzopoulos & Theodore Koutroukis, 2019. "Regional underdevelopment and less developed business ecosystems: The case of Eastern Macedonia and Thrace," Bulletin of Applied Economics, Risk Market Journals, vol. 6(2), pages 31-44.
    4. Klaus Friesenbichler & Christian Glocker & Werner Hölzl & Philipp Wegmüller, 2018. "Ein neues Modell für die kurzfristige Prognose der Herstellung von Waren und der Ausrüstungsinvestitionen," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(9), pages 651-661, September.
    5. Rašiová, Barbara & Árendáš, Peter, 2023. "Copula approach to market volatility and technology stocks dependence," Finance Research Letters, Elsevier, vol. 52(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jürgen Janger & Werner Hölzl & Serguei Kaniovski & Johannes Kutsam & Michael Peneder & Andreas Reinstaller & Susanne Bärenthaler-Sieber & Isabel Stadler & Fabian Unterlass, 2011. "Structural Change and the Competitiveness of EU Member States," WIFO Studies, WIFO, number 42956, August.
    2. Holzl, Werner & Reinstaller, Andreas, 2007. "The impact of productivity and demand shocks on structural dynamics: Evidence from Austrian manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 18(2), pages 145-166, June.
    3. Yongsung Chang & Jay H. Hong, 2003. "On the Employment Effect of Technology: Evidence from US Manufacturing for 1958-1996," Macroeconomics 0307004, University Library of Munich, Germany.
    4. Kim, Sangho & Lim, Hyunjoon & Park, Donghyun, 2010. "Productivity and Employment in a Developing Country: Some Evidence from Korea," World Development, Elsevier, vol. 38(4), pages 514-522, April.
    5. Miles S. Kimball & John G. Fernald & Susanto Basu, 2006. "Are Technology Improvements Contractionary?," American Economic Review, American Economic Association, vol. 96(5), pages 1418-1448, December.
    6. Werner Hölzl & Andreas Reinstaller, 2005. "Sectoral and Aggregate Technology Shocks:Is There a Relationship?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 45-72, March.
    7. Hölzl, Werner & Reinstaller, Andreas, 2004. "The Impact of technology and demand shocks on structural dynamics: evidence from Austrian manufacturing," Research Memorandum 015, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    8. Werner Hölzl & Andreas Reinstaller, 2004. "The effect of technology and demand shocks on structural and industrial dynamics: Evidence from Austrian manufacturing," Working Papers geewp37, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    9. Andrew Young & William Shughart, 2010. "The consequences of the US DOJ’s antitrust activities: A macroeconomic perspective," Public Choice, Springer, vol. 142(3), pages 409-422, March.
    10. Pu Chen, Armon Rezai, Willi Semmler, 2007. "WP 2007-8 Productivity and Unemployment in the Short and Long Run," SCEPA working paper series. 2007-8, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    11. Giancarlo Corsetti & Luca Dedola & Sylvain Leduc, 2008. "Productivity, External Balance, and Exchange Rates: Evidence on the Transmission Mechanism among G7 Countries," NBER Chapters, in: NBER International Seminar on Macroeconomics 2006, pages 117-194, National Bureau of Economic Research, Inc.
    12. Jordi Gali, 1999. "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?," American Economic Review, American Economic Association, vol. 89(1), pages 249-271, March.
    13. James M. Nason & Takashi Kano, 2004. "Business Cycle Implications of Habit Formation," Computing in Economics and Finance 2004 175, Society for Computational Economics.
    14. Holmlund, Bertil & Alexius, Annika, 2008. "Monetary Policy and Swedish Unemployment Fluctuations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-25.
    15. Andersen, Allan Dahl & Andersen, Per Dannemand, 2014. "Innovation system foresight," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 276-286.
    16. Alessi, Lucia & Barigozzi, Matteo & Capasso, Marco, 2013. "The common component of firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 26(C), pages 73-82.
    17. Netsunajev, Aleksei, 2013. "Reaction to technology shocks in Markov-switching structural VARs: Identification via heteroskedasticity," Journal of Macroeconomics, Elsevier, vol. 36(C), pages 51-62.
    18. Tomislav Globan & Vladimir Arčabić & Petar Sorić, 2016. "Inflation in New EU Member States: A Domestically or Externally Driven Phenomenon?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(1), pages 154-168, January.
    19. Giancarlo Corsetti & Luca Dedola & Sylvain Leduc, 2008. "International Risk Sharing and the Transmission of Productivity Shocks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(2), pages 443-473.
    20. Bachmann, Rüdiger & Zorn, Peter, 2020. "What drives aggregate investment? Evidence from German survey data," Journal of Economic Dynamics and Control, Elsevier, vol. 115(C).

    More about this item

    Keywords

    technology shocks; business cycle; long-run restrictions; sectoral response; structural change;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rmk:rmkbae:v:2:y:2015:i:1:p:1-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.riskmarket.co.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.