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Some General Equilibrium Effects Of Mining Growth On The Economy

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  • Stoeckel, Andrew B.

Abstract

The effects of mining sector growth are analysed with a five-sector general equilibrium model. The effect of the mineral discoveries is to cause the agricultural sector to contract, but to cause the import-competing sector to expand by a small amount--a result which differs from Gregory's (1976) analysis. However, a mining boom caused by increases in external demand, rather than by new discoveries, leads to a different set of results. Some likely effects of the boom on the growth rates of the different sectors in the economy are reported. Finally, the effects of an export tax on minerals are considered.

Suggested Citation

  • Stoeckel, Andrew B., 1979. "Some General Equilibrium Effects Of Mining Growth On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-22, April.
    • Handle: RePEc:ags:ajaeau:22599
    DOI: 10.22004/ag.econ.22599
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    References listed on IDEAS

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    1. Kingma, O.T. & Longmire, J.L. & Stoeckel, A.B., 1980. "Some Aspects of Quantitative Modelling in the Australian Bureau of Agricultural Economics," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 17.
    2. Jock R. Anderson, 1982. "Agricultural Economics, Interdependence And Uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(2), pages 89-97, August.
    3. 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.
    4. K.W. Clements & H. Ahammad & Y. Qiang, 1997. "The Economics of New Mining and Mineral-processing Projects in WA: Part 2," Economics Discussion / Working Papers 97-14, The University of Western Australia, Department of Economics.
    5. Clements, Kenneth & Lan, Yihui & Roberts, John, 2008. "Exchange-rate economics for the resources sector," Resources Policy, Elsevier, vol. 33(2), pages 102-117, June.
    6. Yihui Lan, 2003. "The Long-Term Behaviour of Exchange Rates, Part II: Aspects of Exchange-Rate Economics," Economics Discussion / Working Papers 03-06, The University of Western Australia, Department of Economics.
    7. Qiang Ye, 2006. "Commodity Booms and Their Impacts on the Western Australian Economy: The Iron Ore Case," Economics Discussion / Working Papers 06-18, The University of Western Australia, Department of Economics.
    8. repec:ags:aare16:235308 is not listed on IDEAS
    9. Fisher, Brian S., 1985. "Frontiers in Agricultural Policy Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(02), pages 1-11, August.
    10. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    11. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    12. Rini Yayuk Priyati, 2009. "Dutch disease economics a case study of Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 1(3), pages 147-159, April.
    13. Pandey, Sushil & Piggott, Roley R. & MacAulay, T. Gordon, 1982. "The Elasticity Of Aggregate Australian Agricultural Supply: Estimates And Policy Implications," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 1-18, December.
    14. K.H. Choi, 1988. "The Economics of Booming Sectors," Economics Discussion / Working Papers 88-04, The University of Western Australia, Department of Economics.
    15. G.L. Murray, 1982. "Adjustment to an Export Expansion-Trade-off Between Real Wage and Real Exchange Rates," Economics Discussion / Working Papers 82-08, The University of Western Australia, Department of Economics.
    16. Orden, David Robert, 1984. "Capital Flows, the Exchange Rate, and Agricultural Commodity Markets," Faculty and Alumni Dissertations 322833, University of Minnesota, Department of Applied Economics.
    17. Sharples, Jerry A. & Milham, Nick, 1990. "Long-run Competitiveness of Australian Agriculture," Foreign Agricultural Economic Report (FAER) 147996, United States Department of Agriculture, Economic Research Service.
    18. Ye, Qiang, 2008. "Commodity booms and their impacts on the Western Australian economy: The iron ore case," Resources Policy, Elsevier, vol. 33(2), pages 83-101, June.
    19. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    20. W. M. Corden, 1982. "Exchange Rate Policy and the Resources Boom," The Economic Record, The Economic Society of Australia, vol. 58(1), pages 18-31, March.

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