| This study investigates the economic effects of external oil and food price shocks in the context of selected Asia and Pacific countries including Australia, New Zealand, South Korea, Singapore, Hong Kong, Taiwan, India and Thailand. The study is conducted within the framework of SVAR model using quarterly data over the period 1980 to 2010 although start date varies based on availability of data. The study reveals that resource poor countries that specialize in heavy manufacturing industries like Korea and Taiwan are highly affected by international oil price shocks. Oil price shocks negatively affect industrial output growth and exchange rate and positively affect inflation and interest rates. On the other hand, oil poor nations such as Australia and New... |
