IDEAS home Printed from https://ideas.repec.org/a/rba/rbabul/dec2014-04.html

Chinese Rebalancing and Australian Exports

Author

Listed:
  • Gerard Kelly

    (Reserve Bank of Australia)

Abstract

The Chinese authorities plan to gradually rebalance the composition of Chinese economic growth from investment towards household consumption. This article uses the World Input-Output Database (WIOD) to give a general sense of how this rebalancing might affect Australian exports and economic activity. Dollar for dollar, Chinese investment appears to absorb more than twice as much Australian value-added output as Chinese household consumption. This largely reflects the significant role of resource commodities in Australia’s exports to China, which are used more intensively in investment than consumption. Simple analysis using the WIOD suggests that a shift from investment to consumption in China is likely to weigh on the growth of demand for Australia’s mineral resources, although a rise in demand by Chinese households for food products and services could provide some offset.

Suggested Citation

  • Gerard Kelly, 2014. "Chinese Rebalancing and Australian Exports," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 23-30, December.
    • Handle: RePEc:rba:rbabul:dec2014-04
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/bulletin/2014/dec/pdf/bu-1214-4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vanessa Rayner & James Bishop, 2013. "Industry Dimensions of the Resource Boom: An Input-Output Analysis," RBA Research Discussion Papers rdp2013-02, Reserve Bank of Australia.
    2. Leon Berkelmans & Hao Wang, 2012. "Chinese Urban Residential Construction," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 21-26, September.
    3. Gerard Kelly & Gianni La Cava, 2014. "International Trade Costs, Global Supply Chains and Value-added Trade in Australia," RBA Research Discussion Papers rdp2014-07, Reserve Bank of Australia.
    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. Simola, Heli, 2015. "Rebalancing of demand in China: Illustrating possible effects with an input-output analysis," BOFIT Policy Briefs 9/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    2. Tanweer Akram & Anupam Das, 2020. "Australian Government Bonds’ Nominal Yields: A Keynesian Perspective," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-20, March.
    3. Kate Stratford & Arianna Cowling, 2016. "Chinese Household Income, Consumption and Savings," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 31-40, September.
    4. Guonan Ma & Ivan Roberts & Gerard Kelly, 2016. "A Rebalancing Chinese Economy: Challenges and International Implications," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    5. Tanweer Akram & Anupam Das, 2018. "Australian Government Bonds' Nominal Yields: An Empirical Analysis," Economics Working Paper Archive wp_910, Levy Economics Institute.

    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. Tim Robinson & Tim Atkin & Mark Caputo & Hao Wang, 2017. "Macroeconomic Consequences of Terms of Trade Episodes, Past and Present," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(3), pages 291-315, November.
    2. Manalo, Josef & Perera, Dilhan & Rees, Daniel M., 2015. "Exchange rate movements and the Australian economy," Economic Modelling, Elsevier, vol. 47(C), pages 53-62.
    3. Guonan Ma & Ivan Roberts & Gerard Kelly, 2016. "A Rebalancing Chinese Economy: Challenges and International Implications," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    4. Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 17-22, December.
    5. Hansen, James & Gross, Isaac, 2018. "Commodity price volatility with endogenous natural resources," European Economic Review, Elsevier, vol. 101(C), pages 157-180.
    6. Miss Mali Chivakul & Mr. Waikei Raphael Lam & Xiaoguang Liu & Wojciech Maliszewski & Mr. Alfred Schipke, 2015. "Understanding Residential Real Estate in China," IMF Working Papers 2015/084, International Monetary Fund.
    7. Mary-Alice Doyle, 2014. "Labour Movements during the Resources Boom," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 7-16, December.
    8. Kenneth W. Clements & Liang Li, 2014. "Valuing Resource Investments," Economics Discussion / Working Papers 14-27, The University of Western Australia, Department of Economics.
    9. Boyd Hunter & Monica Howlett & Matthew Gray, 2015. "The Economic Impact of the Mining Boom on Indigenous and Non-Indigenous Australians," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 517-530, September.
    10. Adam Gorajek & Daniel Rees, 2015. "Lower Bulk Commodity Prices and Their Effect on Economic Activity," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 31-38, September.
    11. Knop, Stephen J. & Vespignani, Joaquin L., 2014. "The sectorial impact of commodity price shocks in Australia," Economic Modelling, Elsevier, vol. 42(C), pages 257-271.
    12. Dai, Feng & Liu, Ruixiang & Guo, Hao & Du, Xiuhong, 2020. "How does intermediate consumption affect GVC positions? - A comparison between China and US," China Economic Review, Elsevier, vol. 63(C).
    13. Isaac Gross & James Hansen, 2013. "Reserves of Natural Resources in a Small Open Economy," RBA Research Discussion Papers rdp2013-14, Reserve Bank of Australia.
    14. Tim Atkin & Mark Caputo & Tim Robinson & Hao Wang, 2014. "Australia after the Terms of Trade Boom," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 55-62, March.
    15. Zhang, Qi & Xu, Jin & Wang, Yujie & Hasanbeigi, Ali & Zhang, Wei & Lu, Hongyou & Arens, Marlene, 2018. "Comprehensive assessment of energy conservation and CO2 emissions mitigation in China’s iron and steel industry based on dynamic material flows," Applied Energy, Elsevier, vol. 209(C), pages 251-265.
    16. Ivailo Arsov & Ben Shanahan & Thomas Williams, 2013. "Funding the Australian Resources Investment Boom," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 51-62, March.
    17. Ivanova, Galina, 2014. "The mining industry in Queensland, Australia: Some regional development issues," Resources Policy, Elsevier, vol. 39(C), pages 101-114.
    18. Robson Mandishekwa, 2021. "Rethinking mining as a development panacea: an analytical review," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 151-162, April.
    19. repec:ags:aare16:235308 is not listed on IDEAS
    20. Gerard Kelly & Gianni La Cava, 2013. "Value-added Trade and the Australian Economy," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 29-38, March.
    21. Paflioti, Persa & Vitsounis, Thomas K. & Teye, Collins & Bell, Michael G.H. & Tsamourgelis, Ioannis, 2017. "Box dynamics: A sectoral approach to analyse containerized port throughput interdependencies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 396-413.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:rba:rbabul:dec2014-04. 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: Paula Drew (email available below). General contact details of provider: https://edirc.repec.org/data/rbagvau.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.