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The Exports Transmission Mechanism of Foreign Business Cycles to Australia[Note 1. We would like to especially thank Mono Chatterjee, Lynne ...]
Author(s) -
De Roos Nicolas,
Russell Bill
Publication year - 2002
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/1475-4932.00038
Subject(s) - economics , international economics , business cycle , international trade , business , monetary economics , macroeconomics
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.