Living Standards, Terms of Trade and Foreign Ownership: Reflections on the Australian Mining Boom
Robert Gregory ()
No 656, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University
Australia is experiencing its largest mining boom for more than a century and a half. This paper explores, from a national perspective, important economic differences that arise when a mining boom, such as the current one, is generated by sustained export price increases (trading gains) rather than export volume increases. Since 2003 the terms of trade changes – through their direct trading gain effect and indirect real GDP effects - have increased Australian living standards. The increase, measured from official data and relative to the US, is about 25 per cent; an increase which probably places Australian living standards well above those of the US. But official data inadequately adjusts for foreign ownership of mining resources suggesting that this estimate is probably a little too high.
Keywords: resource booms; terms of trade; real GDP; foreign ownership; economic growth (search for similar items in EconPapers)
JEL-codes: Q33 O11 E01 O47 C43 (search for similar items in EconPapers)
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Journal Article: Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom (2012)
Journal Article: Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom* (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:auu:dpaper:656
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