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The Effect of the Mining Boom on the Australian Economy

Author

Listed:
  • Peter Downes

    (Outlook Economics)

  • Kevin Hanslow

    (Centre of Policy Studies, Victoria University)

  • Peter Tulip

    (Reserve Bank of Australia)

Abstract

This paper estimates the effects of the mining boom in Australia, using a large-scale structural macroeconometric model, AUS-M. We estimate that the mining boom boosted real per capita household disposable income by 13 per cent by 2013. The boom has contributed to a large appreciation of the Australian dollar that has weighed on other industries exposed to trade, such as manufacturing and agriculture. However, because manufacturing benefits from higher demand for inputs to mining, the deindustrialisation that sometimes accompanies resource booms – the so-called 'Dutch disease' – has not been strong.

Suggested Citation

  • Peter Downes & Kevin Hanslow & Peter Tulip, 2014. "The Effect of the Mining Boom on the Australian Economy," RBA Research Discussion Papers rdp2014-08, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp2014-08
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    References listed on IDEAS

    as
    1. Adam McKissack & Jennifer Chang & Robert Ewing & Jyoti Rahman, 2008. "Structural effects of a sustained rise in the terms of trade," Treasury Working Papers 2008-01, The Treasury, Australian Government, revised Jul 2008.
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    6. Vanessa Rayner & James Bishop, 2013. "Industry Dimensions of the Resource Boom: An Input-Output Analysis," RBA Research Discussion Papers rdp2013-02, Reserve Bank of Australia.
    7. Adam Cagliarini & Warwick McKibbin, 2010. "Global Relative Price Shocks: The Role of Macroeconomic Policies," RBA Annual Conference Volume (Discontinued), in: Renée Fry & Callum Jones & Christopher Kent (ed.),Inflation in an Era of Relative Price Shocks, Reserve Bank of Australia.
    8. 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.
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    More about this item

    Keywords

    mining boom; Dutch disease; macroeconomic modelling;
    All these keywords.

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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