IDEAS home Printed from
   My bibliography  Save this paper

The Dynamics of Resource-Based Economic Development: Evidence from Australia and Norway




Australia and Norway have achieved modern levels of development as resource-based economies, thus avoiding the so-called resource curse. Their ability to achieve this rested heavily upon diversification into new resource products and industries. These processes relied heavily on innovation, confirming the close ties that have existed between resource-based industries and knowledge-producing and disseminating sectors of society. We develop a resource-based diversification model that analyses the interaction between ‘enabling’ sectors and resource industries and apply it to the historical experience of the two countries.

Suggested Citation

  • Simon Ville & Olav Wicken, 2012. "The Dynamics of Resource-Based Economic Development: Evidence from Australia and Norway," Economics Working Papers wp12-04, School of Economics, University of Wollongong, NSW, Australia.
  • Handle: RePEc:uow:depec1:wp12-04

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. David Merrett & Stephen Morgan & Simon Ville, 2008. "Industry associations as facilitators of social capital: The establishment and early operations of the Melbourne Woolbrokers Association," Business History, Taylor & Francis Journals, vol. 50(6), pages 781-794.
    2. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    3. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    4. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    5. McLean, Ian W., 2007. "Why was Australia so rich?," Explorations in Economic History, Elsevier, vol. 44(4), pages 635-656, October.
    6. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Ville,Simon, 2010. "The Rural Entrepreneurs," Cambridge Books, Cambridge University Press, number 9780521125949, March.
    8. Greasley, David & Oxley, Les, 2010. "Knowledge, natural resource abundance and economic development: Lessons from New Zealand 1861-1939," Explorations in Economic History, Elsevier, vol. 47(4), pages 443-459, October.
    9. David Greasley & Jakob B. Madsen, 2010. "Curse and Boon: Natural Resources and Long-Run Growth in Currently Rich Economies," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 311-328, September.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. David Greasley & Jakob B. Madsen, 2017. "The Rise and Fall of Exceptional Australian Incomes Since 1800," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(3), pages 264-290, November.
    2. Isabel Álvarez González & Romilio Labra, 2013. "Identifying the role of natural resources in knowledge-based strategies of development," Working Papers del Instituto Complutense de Estudios Internacionales 1305, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    3. Lisa Scordato & Markus M. Bugge & Arne Martin Fevolden, 2017. "Directionality across Diversity: Governing Contending Policy Rationales in the Transition towards the Bioeconomy," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-14, February.
    4. Iizuka, Michiko & Vargas, Fernando & Baumann, Jakob, 2017. "Financial mechanism to invest in knowledge from natural resource revenues: Experiences from Bolivia, Chile, Colombia and Peru," MERIT Working Papers 042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. repec:eee:jrpoli:v:54:y:2017:i:c:p:167-175 is not listed on IDEAS
    6. repec:eee:worbus:v:53:y:2018:i:1:p:85-91 is not listed on IDEAS
    7. Kristin Ranestad, 2016. "The mining sectors in Chile and Norway, ca. 1870 - 1940: the development of a knowledge gap," Working Papers 0105, European Historical Economics Society (EHES).
    8. Marc Badia-Miró & Cristián A. Ducoing, 2014. "The long run development of Chile and the Natural Resources curse. Linkages, policy and growth, 1850-1950," UB Economics Working Papers 2014/318, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.

    More about this item


    resource curse; enabling sectors; knowledge economy; social technologies;

    JEL classification:

    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:uow:depec1:wp12-04. 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: (Peter Siminski). General contact details of provider: .

    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.