IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v95y2019i311p407-424.html
   My bibliography  Save this article

A Granular View of the Australian Business Cycle

Author

Listed:
  • Jorge Miranda‐Pinto
  • Yuanting Shen

Abstract

We provide evidence supporting the hypothesis that idiosyncratic firm‐level shocks are important drivers of the Australian business cycle (granular hypothesis). We first document that the distribution of firm size in Australia is substantially asymmetric and follows a power‐law distribution with a long right tail. We then show that labour productivity shocks to the largest non‐financial firms in Australia account for about 20–40 per cent of the variation in Australian GDP growth over the period 2000–18. Besides energy sector firms, firms in the construction, transportation and consumer services sectors appear to be relevant drivers of GDP growth.

Suggested Citation

  • Jorge Miranda‐Pinto & Yuanting Shen, 2019. "A Granular View of the Australian Business Cycle," The Economic Record, The Economic Society of Australia, vol. 95(311), pages 407-424, December.
    • Handle: RePEc:bla:ecorec:v:95:y:2019:i:311:p:407-424
    DOI: 10.1111/1475-4932.12495
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-4932.12495
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1475-4932.12495?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jannati, Sima & Korniotis, George & Kumar, Alok, 2020. "Big fish in a small pond: Locally dominant firms and the business cycle," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 219-240.
    2. Joachim Wagner & John P. Weche, 2020. "On the granularity of the German economy – first evidence from the top 100 companies panel database," Applied Economics Letters, Taylor & Francis Journals, vol. 27(21), pages 1768-1771, December.
    3. Murilo Silva & Sergio Da Silva, 2020. "The Brazilian granular business cycle," Economics Bulletin, AccessEcon, vol. 40(1), pages 463-472.
    4. Carlos Melo Gouveia & Cristina Manteu & Sónia Cabral, 2020. "The granularity of Portuguese firm-level exports," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    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. Jannati, Sima & Korniotis, George & Kumar, Alok, 2020. "Big fish in a small pond: Locally dominant firms and the business cycle," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 219-240.
    2. Maia, Adriano & Oliveira, Guilherme De & Matsushita, Raul & Da Silva, Sergio, 2021. "The granularity of the Brazilian banking market," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    3. Jozef Konings & Galiya Sagyndykova & Venkat Subramanian & Astrid Volckaert, 2023. "The granular nature of emerging market economies: The case of Kazakhstan," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 429-464, April.

    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. Petra Štamfestová & Lukáš Sobíšek & Jiří Hnilica, 2023. "Firm Size Distribution in the Central European Context," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 151-175.
    2. Adriano Maia & Guilherme De Oliveira & Raul Matsushita & Sergio Da Silva, 2023. "Granular banks and corporate investment," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(3), pages 586-599, September.
    3. João Vasco Coelho, 2022. "Non‐linear internationalization processes in Portugal: Evidence across retail, construction and software development industries," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 539-559, June.
    4. Jozef Konings & Galiya Sagyndykova & Venkat Subramanian & Astrid Volckaert, 2023. "The granular nature of emerging market economies: The case of Kazakhstan," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(2), pages 429-464, April.
    5. João Vasco Coelho, 2022. "Recruiting Business Expatriates in Portugal: The Moderating Role of Employee Willingness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(2), pages 206-227, July.
    6. Maia, Adriano & Oliveira, Guilherme De & Matsushita, Raul & Da Silva, Sergio, 2021. "The granularity of the Brazilian banking market," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    7. Ana Catarina Pimenta & João Amador & Mário Lourenço & Cloé Magalhães, 2020. "Rise and fall of the largest firms in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    8. Jozef Konings & Galiya Sagyndykova & Venkat Subramanian & Astrid Volckaert, 2021. "The granular economy of Kazakhstan," Working Papers 2021/01, Nazarbayev University, Graduate School of Business.

    More about this item

    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:bla:ecorec:v:95:y:2019:i:311:p:407-424. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    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.