The Effect of the Mining Boom on the Australian Economy

Reserve Bank of Australia Research Discussion Paper No. 2014-08

52 Pages Posted: 10 Dec 2015

See all articles by Peter M Downes

Peter M Downes

Reserve Bank of Australia

Kevin Hanslow

Government of the Commonwealth of Australia - Productivity Commission

Peter Tulip

Reserve Bank of Australia

Date Written: August 22, 2014

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.

Keywords: mining boom, Dutch disease, macroeconomic modelling

JEL Classification: E17, Q33

Suggested Citation

Downes, Peter M and Hanslow, Kevin and Tulip, Peter, The Effect of the Mining Boom on the Australian Economy (August 22, 2014). Reserve Bank of Australia Research Discussion Paper No. 2014-08. Available at SSRN: https://ssrn.com/abstract=2701080 or http://dx.doi.org/10.2139/ssrn.2701080

Peter M Downes

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

Kevin Hanslow

Government of the Commonwealth of Australia - Productivity Commission ( email )

Level 28, 35 Collins St.
Melbourne, Victoria, 3000
Australia

Peter Tulip (Contact Author)

Reserve Bank of Australia ( email )

GPO Box 3947
Sydney, NSW 2001
Australia
61-2-9551-8831 (Phone)

HOME PAGE: http://www.petertulip.com

Register to save articles to
your library

Register

Paper statistics

Downloads
535
Abstract Views
2,033
rank
51,478
PlumX Metrics