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The Trickle‐down Effect of the Mining Boom in Australia: Fact or Myth?

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  • Omar H. M. N. Bashar

Abstract

This paper examines the relationship between the output levels in the mining sector and various non‐mining sectors in an attempt to understand the role of the mining sector in Australia. The unobserved components time series model is used to estimate the effects of the output gap and the growth regime in the mining sector on the output level of each of several non‐mining sectors. Overall, the estimates obtained do not suggest an overwhelmingly positive effect running from the mining sector to other production and services sectors, implying that the trickle‐down effect of the mining boom may be a myth.

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  • Omar H. M. N. Bashar, 2015. "The Trickle‐down Effect of the Mining Boom in Australia: Fact or Myth?," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 94-108, June.
    • Handle: RePEc:bla:ecorec:v:91:y:2015:i:s1:p:94-108
    DOI: 10.1111/1475-4932.12187
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    1. Valle de Souza, Simone & Dollery, Brian & Blackwell, Boyd, 2018. "An empirical analysis of mining costs and mining royalties in Queensland local government," Energy Economics, Elsevier, vol. 74(C), pages 656-662.
    2. Drew, Joseph & Dollery, Brian Edward & Blackwell, Boyd Dirk, 2018. "A square deal? Mining costs, mining royalties and local government in New South Wales, Australia," Resources Policy, Elsevier, vol. 55(C), pages 113-122.
    3. Lacey, Justine & Malakar, Yuwan & McCrea, Rod & Moffat, Kieren, 2019. "Public perceptions of established and emerging mining technologies in Australia," Resources Policy, Elsevier, vol. 62(C), pages 125-135.

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