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Commodity Booms and Their Impacts on the Western Australian Economy: The Iron Ore Case


  • Qiang Ye

    (State Development Strategies Division, Western Australian Department of Industry and Resources)


Western Australia is a resource-rich province. Since 1890s, the resources booms have played a key role in the development of the State’s economy. In the last a few years, Western Australia’s resources industry continued to enjoy exceptional conditions created by strong international demand for commodities. This paper is aimed to examine the likely impact of this commodity boom in the iron ore sector on the Western Australian economy using a general equilibrium approach. The modelling results indicate that the Western Australian economy will benefit from the expansion in iron ore exports and investment in terms of rising consumption and employment, although at the industry level there will be losers as well as winners.

Suggested Citation

  • 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.
  • Handle: RePEc:uwa:wpaper:06-18

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    References listed on IDEAS

    1. R.G. Gregory, 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, August.
    2. 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(01), April.
    3. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    4. Dornbusch, Rudiger, 1974. "Tariffs and nontraded goods," Journal of International Economics, Elsevier, vol. 4(2), pages 177-185, May.
    5. Snape, Richard H., 1977. "Effects Of Mineral Development On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
    6. Philip D. Adams & Mark Horridge & Glyn Wittwer, 2003. "MMRF-GREEN: A Dynamic Multi-Regional Applied General Equilibrium Model of the Australian Economy, Based on the MMR and MONASH Models," Centre of Policy Studies/IMPACT Centre Working Papers g-140, Victoria University, Centre of Policy Studies/IMPACT Centre.
    7. Corden, W M, 1982. "Exchange Rate Policy and the Resources Boom," The Economic Record, The Economic Society of Australia, vol. 58(160), pages 18-31, March.
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    Cited by:

    1. Barber, Marcus & Jackson, Sue, 2012. "Indigenous engagement in Australian mine water management: The alignment of corporate strategies with national water reform objectives," Resources Policy, Elsevier, vol. 37(1), pages 48-58.

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