Do country-specific shocks matter? Evidence from Australia and high income countries

Inyeob Philip Ji

    Research output: Contribution to journalArticleResearchpeer-review


    A stylized fact of global upward trend in domestic-world output ratio for major small open economies is recognized in comparison with Australia s dichotomous experience with the ratio. This fact is used to shed light on the importance of country-specific shocks for small open economies using a simple real business cycle model. While it has been previously found that country-specific shocks are more significant source of business cycle fluctuations than worldwide shocks for Australia before the 1990s, this article suggests that the country-specific shocks may have become an important driver of output growth only in the early 1990s for Australia.
    Original languageEnglish
    Pages (from-to)729 - 739
    Number of pages11
    JournalApplied Economics
    Issue number6
    Publication statusPublished - 2013

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