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Long-term relationships of major macro-variables in a resource-related economic model of Australia. A cointegration analysis

Journal Article


Abstract


  • The paper reports the results of a simple cointegration analysis applied to bivariate causality models using data on resource output, oil prices, terms of trade, current account and output growth to investigate the long-term relationships in the sense of Granger among these major macroeconomic aggregates in a resource-related economic model of Australia. For the period 1960-90, the empirical evidence indicates that these five macro-variables, as formulated in our model, are not random walks. In addition, resource production and oil prices are significantly cointegrated, and they are also significantly cointegrated with the current account, terms of trade and economic growth. These findings provide support to the long-term adjustments foundation of our resource-related model. © 1993.

Publication Date


  • 1993

Citation


  • Harvie, C., & van Hoa, T. (1993). Long-term relationships of major macro-variables in a resource-related economic model of Australia. A cointegration analysis. Energy Economics, 15(4), 257-261. doi:10.1016/0140-9883(93)90015-J

Scopus Eid


  • 2-s2.0-0027750017

Web Of Science Accession Number


Start Page


  • 257

End Page


  • 261

Volume


  • 15

Issue


  • 4

Abstract


  • The paper reports the results of a simple cointegration analysis applied to bivariate causality models using data on resource output, oil prices, terms of trade, current account and output growth to investigate the long-term relationships in the sense of Granger among these major macroeconomic aggregates in a resource-related economic model of Australia. For the period 1960-90, the empirical evidence indicates that these five macro-variables, as formulated in our model, are not random walks. In addition, resource production and oil prices are significantly cointegrated, and they are also significantly cointegrated with the current account, terms of trade and economic growth. These findings provide support to the long-term adjustments foundation of our resource-related model. © 1993.

Publication Date


  • 1993

Citation


  • Harvie, C., & van Hoa, T. (1993). Long-term relationships of major macro-variables in a resource-related economic model of Australia. A cointegration analysis. Energy Economics, 15(4), 257-261. doi:10.1016/0140-9883(93)90015-J

Scopus Eid


  • 2-s2.0-0027750017

Web Of Science Accession Number


Start Page


  • 257

End Page


  • 261

Volume


  • 15

Issue


  • 4