IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/11598.html
   My bibliography  Save this paper

Sectoral Trends and Shocks in Australia's Economic Growth

Author

Listed:
  • Anderson, Kym

Abstract

This paper examines the extent to which sectoral trends and fluctuations in the Australian economy can be understood using international trade theory and knowledge of key policy developments. It suggests they are consistent with theory, but it also reveals several features that make Australia's economy unusual. The most striking are the facts that (1) the agricultural sector's share of GDP remained fairly constant rather than falling during 1860-1960 and even during the latest mining boom; and (2) the farm sector continued to enjoy a strong comparative advantage despite periodic spurts of growth in mining exports.

Suggested Citation

  • Anderson, Kym, 2016. "Sectoral Trends and Shocks in Australia's Economic Growth," CEPR Discussion Papers 11598, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11598
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11598
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Julian M. Alston & Kym Anderson & Philip G. Pardey & Bill Malcolm & Vic Wright, 2016. "Antipodean agricultural and resource economics at 60: farm management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 516-530, October.
    2. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    3. Kym Anderson, 1987. "On Why Agriculture Declines with Economic Growth," Agricultural Economics, International Association of Agricultural Economists, vol. 1(3), pages 195-207, October.
    4. Kym Anderson & William A. Masters, 2009. "Distortions to Agricultural Incentives in Africa," World Bank Publications, The World Bank, number 2607, June.
    5. Kym Anderson, 2009. "Distortions to Agricultural Versus Nonagricultural Producer Incentives," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 55-74, September.
    6. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    7. Julian M. Alston & Kym Anderson & Philip G. Pardey & Geoff Edwards & Winton Bates, 2016. "Antipodean agricultural and resource economics at 60: agricultural adjustment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 573-589, October.
    8. Freebairn, John, 2015. "Mining booms and the exchange rate," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), October.
    9. Anderson, Kym, 2009. "Five Decades of Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48742, World Bank.
    10. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    11. Julian M. Alston & Kym Anderson & Philip G. Pardey & John C. Quiggin & Jock R. Anderson, 2016. "Antipodean agricultural and resource economics at 60: risk and uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 535-549, October.
    12. Julian M. Alston & Kym Anderson & Philip G. Pardey & Brian S. Fisher, 2016. "Antipodean agricultural and resource economics at 60: climate change policy and energy transition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 692-705, October.
    13. Peter Lloyd & Donald MacLaren, 2015. "Relative assistance to Australian agriculture and manufacturing since Federation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 159-170, April.
    14. Christian Gillitzer & Jonathan Kearns, 2005. "Long-term Patterns in Australia’s Terms of Trade," RBA Research Discussion Papers rdp2005-01, Reserve Bank of Australia.
    15. Julian M. Alston & Kym Anderson & Philip G. Pardey & Jeff Bennett & Alan Randall, 2016. "Antipodean agricultural and resource economics at 60: environmental economics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 672-687, October.
    16. Julian M. Alston & Kym Anderson & Philip G. Pardey & David Pannell & Graeme Doole & Jimmy Cheung, 2016. "Antipodean agricultural and resource economics at 60: natural resource management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 651-667, October.
    17. Anderson, Kym, 1998. "Are resource-abundant economies disadvantaged?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(1), pages 1-23.
    18. Maddock, Rodney & McLean, Ian, 1984. "Supply-Side Shocks: The Case of Australian Gold," The Journal of Economic History, Cambridge University Press, vol. 44(4), pages 1047-1067, December.
    19. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    20. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    21. Polyakov, Maksym & Gibson, Fiona L. & Pannell, David J., 2016. "Antipodean agricultural and resource economics at 60: Trends in topics, authorship and collaboration," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), October.
    22. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications, The World Bank, number 2611, June.
    23. Auty, R. & Warhurst, A., 1993. "Sustainable development in mineral exporting economies," Resources Policy, Elsevier, vol. 19(1), pages 14-29, March.
    24. Julian M. Alston & Kym Anderson & Philip G. Pardey & Julian M. Alston & Philip G. Pardey, 2016. "Antipodean agricultural and resource economics at 60: agricultural innovation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 554-568, October.
    25. Leamer, Edward E, 1987. "Paths of Development in the Three-Factor, n-Good General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 961-999, October.
    26. Anderson, Kym & Swinnen, Johan F.M., 2009. "Distortions to Agricultural Incentives in Eastern Europe and Central Asia," Agricultural Distortions Working Paper Series 48624, World Bank.
    27. Syrquin, Moshe & Chenery, Hollis, 1989. "Three decades of industrialization," MPRA Paper 32771, University Library of Munich, Germany.
    28. Alan V. Deardorff, 1984. "An Exposition and Exploration of Krueger's Trade Model," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 731-746, November.
    29. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications, The World Bank, number 9436, June.
    30. Venables, Anthony J., 2004. "Small, remote and poor?," World Trade Review, Cambridge University Press, vol. 3(3), pages 453-457, November.
    31. Julian M. Alston & Kym Anderson & Philip G. Pardey & John Freebairn, 2016. "Antipodean agricultural and resource economics at 60: booming sector economics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(4), pages 633-646, October.
    32. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper Series 50306, World Bank.
    33. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-422, January.
    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. Kym Anderson & Sundar Ponnusamy, 2019. "Structural Transformation to Manufacturing and Services: What Role for Trade?," Asian Development Review, MIT Press, vol. 36(2), pages 32-71, September.

    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. Kym Anderson, 2018. "Mining’s impact on the competitiveness of other sectors in a resource-rich economy: Australia since the 1840s," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 141-151, May.
    2. Kym Anderson & Sundar Ponnusamy, 2019. "Structural Transformation to Manufacturing and Services: What Role for Trade?," Asian Development Review, MIT Press, vol. 36(2), pages 32-71, September.
    3. Kym Anderson & Anna Strutt, 2016. "Impacts of Emerging Asia on African and Latin American Trade: Projections to 2030," The World Economy, Wiley Blackwell, vol. 39(2), pages 172-194, February.
    4. Kym Anderson & Ernesto Valenzuela, 2011. "Agricultural Policy as a Barrier to Global Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 11, Edward Elgar Publishing.
    5. Eva Fernández, 2016. "Politics, coalitions, and support of farmers, 1920–1975," European Review of Economic History, Oxford University Press, vol. 20(1), pages 102-122.
    6. Kolawole Ogundari & Bolarinwa Olufemi Daniel, 2018. "Working Paper 294 - Agricultural Innovations, Production, and Household Welfare in Africa," Working Paper Series 2421, African Development Bank.
    7. Kinnucan, Henry W., 2016. "Timber price dynamics after a natural disaster: Hurricane Hugo revisited," Journal of Forest Economics, Elsevier, vol. 25(C), pages 115-129.
    8. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    9. Kym Anderson, 2009. "Distorted Agricultural Incentives and Economic Development: Asia's Experience," The World Economy, Wiley Blackwell, vol. 32(3), pages 351-384, March.
    10. Peter Lloyd & Peter Lloyd, 2013. "Relative Assistance to Agriculture and Manufacturing since Federation," Department of Economics - Working Papers Series 1173, The University of Melbourne.
    11. Kym Anderson & Hans Grinsted Jensen & Signe Nelgen & Anna Strutt, 2016. "What is the Appropriate Counterfactual When Estimating Effects of Multilateral Trade Policy Reform?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 764-778, September.
    12. Johnson, Michael & Dorosh, Paul, 2015. "Optimal Tariffs with Smuggling: A Spatial Analysis of Nigerian Rice Policy Options," 2015 Conference, August 9-14, 2015, Milan, Italy 211816, International Association of Agricultural Economists.
    13. Calum Brown & Dave Murray-Rust & Jasper van Vliet & Shah Jamal Alam & Peter H Verburg & Mark D Rounsevell, 2014. "Experiments in Globalisation, Food Security and Land Use Decision Making," PLOS ONE, Public Library of Science, vol. 9(12), pages 1-24, December.
    14. Garrone, Maria & Emmers, Dorien & Olper, Alessandro & Swinnen, Johan, 2019. "Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    15. Poczta-Wajda, Agnieszka, 2014. "Assistance To Agriculture In Countries Of A Different Development Level And Trends In World Trade With Agricultural Products," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2014(6).
    16. Johanna L. Croser & Peter J. Lloyd & Kym Anderson, 2010. "How Do Agricultural Policy Restrictions on Global Trade and Welfare Differ Across Commodities?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 698-712.
    17. Elena Briones Alonso & Jo Swinnen, 2015. "A value chain approach to measuring distortions to incentives and food policy effects (with application to Pakistan’s grain policy)," Working Papers of LICOS - Centre for Institutions and Economic Performance 493428, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    18. Giulia Meloni & Jo Swinnen, 2016. "Bugs, tariffs and colonies: the political economy of the wine trade 1860-1970," Working Papers of LICOS - Centre for Institutions and Economic Performance 556191, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    19. S. Niggol Seo, 2011. "The impacts of climate change on Australia and New Zealand: a Gross Cell Product analysis by land cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(2), pages 220-238, April.
    20. Briones, Roehlano M. & Tolin, Lovely Ann C., 2015. "Options for Supporting Rice Farmers Under a Post-QR Regime: Review and Assessment," Research Paper Series DP 2015-46, Philippine Institute for Development Studies.

    More about this item

    Keywords

    agricultural development; manufacturing protection; mining booms; structural transformation; Trade Costs;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cpr:ceprdp:11598. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://www.cepr.org .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.