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
Date Written: August 22, 2014
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: Suggested Citation