IDEAS home Printed from https://ideas.repec.org/p/pas/papers/2026-02.html

Forces Behind South Australia's Unusual Structural Changes Since 1840

Author

Listed:
  • Kym Anderson

Abstract

The agricultural sector's share of GDP in growing economies typically declines but, for a century from the early 1850s, Australia's did not. That trend is most evident for the former colony and now State of South Australia (SA). Moreover, that share for SA has been almost flat since 1980 as well, along with the agricultural sector's share of SA exports. This paper seeks to shed light on the forces behind the unusual evolution of these sectoral shares for SA both up to 1950 and since 1980. The extensive time series data compiled for this paper suggest various partial explanations. For 1850-1950 they include the huge arable land area per worker, clearly defined and enforced property rights in settled rural areas as the frontier of European settlement expanded, the absence of a need to do any processing of the main 19th century exports (copper, wool and wheat), a strong public agricultural research and extension system, and the absence of major mining booms after the copper finds in the 1840s and 1860s.

Suggested Citation

  • Kym Anderson, 2026. "Forces Behind South Australia's Unusual Structural Changes Since 1840," Departmental Working Papers 2026-02, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2026-02
    as

    Download full text from publisher

    File URL: https://openresearch-repository.anu.edu.au/server/api/core/bitstreams/12cf6636-9e18-4ea5-b330-a0c06931478e/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Edwyna Harris & Sumner La Croix, 2021. "Australia’s Forgotten Copper Mining Boom: Understanding How South Australia Avoided Dutch Disease, 1843–1850," The Economic Record, The Economic Society of Australia, vol. 97(318), pages 424-439, September.
    2. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    3. 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.
    4. Lee, Sang Min, 2026. "Globalization and structural transformation: The role of tradable services," Journal of International Economics, Elsevier, vol. 160(C).
    5. Kym Anderson, 2019. "Australian Wine Industry Competitiveness: Why so Slow to Emerge?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 12, pages 283-308, World Scientific Publishing Co. Pte. Ltd..
    6. Williamson, Jeffrey G., 2008. "Globalization and the Great Divergence: terms of trade booms, volatility and the poor periphery, 1782–1913," European Review of Economic History, Cambridge University Press, vol. 12(3), pages 355-391, December.
    7. Jeffrey G. Williamson, 2008. "Globalization and the Great Divergence: Terms of Trade Booms and Volatility in the Poor Periphery 1782-1913," Working Papers 08-07, Association Française de Cliométrie (AFC).
    8. 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.
    9. 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.
    10. Victor R. Fuchs, 1980. "Economic Growth and the Rise of Service Employment," NBER Working Papers 0486, National Bureau of Economic Research, Inc.
    11. Wheeler, Sarah Ann, 2022. "Debunking Murray-Darling Basin water trade myths," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(04), January.
    12. Klaus Deininger & Songqing Jin & Meilin Ma, 2022. "Structural Transformation of the Agricultural Sector In Low- and Middle-Income Economies," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 221-241, October.
    13. C. Peter Timmer, 2009. "A World Without Agriculture: The Structural Transformation in Historical Perspective," Books, American Enterprise Institute, number 43120, September.
    14. Kym Anderson, 2025. "Globalisation and national commodity cycles: The case of wine in Australia," The World Economy, Wiley Blackwell, vol. 48(2), pages 347-372, February.
    15. Kym Anderson & Sundar Ponnusamy, 2023. "Structural transformation away from agriculture in growing open economies," Agricultural Economics, International Association of Agricultural Economists, vol. 54(1), pages 62-76, January.
    Full references (including those not matched with items on IDEAS)

    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, 2023. "Why did agriculture s share of Australian GDP not decline for a century?," Departmental Working Papers 2023-09, The Australian National University, Arndt-Corden Department of Economics.
    2. Kym Anderson, 2022. "Structural transformation in growing open economies: Australia s experience," Departmental Working Papers 2022-13, The Australian National University, Arndt-Corden Department of Economics.
    3. Kym Anderson, 2016. "Sectoral trends and shocks in Australia’s economic growth," Departmental Working Papers 2016-18, The Australian National University, Arndt-Corden Department of Economics.
    4. Anderson, Kym, 2023. "Why did agriculture's share of Australian gross domestic product not decline for a century?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(01), September.
    5. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    6. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    7. Laura Panza, 2014. "De-industrialization and re-industrialization in the Middle East: reflections on the cotton industry in Egypt and in the Izmir region," Economic History Review, Economic History Society, vol. 67(1), pages 146-169, February.
    8. Kym Anderson & Sundar Ponnusamy, 2023. "Structural transformation away from agriculture in growing open economies," Agricultural Economics, International Association of Agricultural Economists, vol. 54(1), pages 62-76, January.
    9. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, June.
    10. 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.
    11. Sambit Bhattacharyya & Jeffrey G. Williamson, 2011. "Commodity Price Shocks And The Australian Economy Since Federation," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 51(2), pages 150-177, July.
    12. Kym Anderson, 2017. "Sectoral Trends and Shocks in Australia's Economic Growth," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(1), pages 2-21, March.
    13. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    14. Jonathan Temple & Huikang Ying & Patrick Carter, 2014. "Transfers and Transformations: Remittances, Foreign Aid, and Growth," Bristol Economics Discussion Papers 14/649, School of Economics, University of Bristol, UK, revised 02 Dec 2014.
    15. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    16. de Vries, Gaaitzen & Kruse, Hagen & Mensah, Emmanuel & Vidogbena, Yabo & Yi, Kei-Mu, 2026. "Structural change in sub-Saharan Africa: An open economy perspective," Journal of International Economics, Elsevier, vol. 161(C).
    17. Di Vaio, Gianfranco & Enflo, Kerstin, 2011. "Did globalization drive convergence? Identifying cross-country growth regimes in the long run," European Economic Review, Elsevier, vol. 55(6), pages 832-844, August.
    18. Anderson, Kym & Strutt, Anna, 2013. "Emerging Asia's Growth and Policy Developments: Implications for Indonesia's Economy and Trade," Conference papers 332298, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Kathryn E. Gary & Cristina Victoria Radu, 2019. "The impact of border changes and protectionism on real wages in early modern Scania," Working Papers 0166, European Historical Economics Society (EHES).
    20. 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.

    More about this item

    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:pas:papers:2026-02. 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: Prema-chandra Athukorala (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.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.