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Resource price turbulence and macroeconomic adjustment for a resource exporter: a conceptual framework for policy analysis

Conference Paper


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Abstract


  • The increased demand for energy and other resources in global markets, particularly arising from the

    rapidly developing economies of China and India, has resulted in considerable turbulence in resource

    prices, and most obviously that of oil. The recent magnitude of change, both positive and negative, in

    resource prices and their macroeconomic implications is of considerable contemporary importance for

    both resource importing and exporting economies. For a resource exporting economy, such as that of

    Australia, the resource price boom had a number of beneficial effects: increased government taxation

    revenues, increased employment and higher wages in the resource and resource related sectors,

    increased spending in the domestic economy and buoyant economic growth, increased resource exports

    to the booming economies of China and India and a stronger domestic currency with beneficial effects

    upon inflation. On the other hand these developments are likely to have adverse effects on the non

    resource sector that is subject to more competition for limited resources, a stronger exchange rate

    results in a loss of international competitiveness and reduced exports, a loss of employment in the non

    resource sector which is likely to be more labour intensive, and an eventual slow down in the overall

    economy. These positive and negative effects, and the overall impact of a resource price boom, will

    fundamentally require closer analysis of the structure of the economy under scrutiny. In this context the

    policy response by government is likely to be crucial in producing overall positive effects. The

    objective of this paper is to provide an analytical framework that can be utilised for a resource

    exporting economy for this purpose.

Publication Date


  • 2008

Citation


  • Cox, G. M. & Harvie, C. (2008). Resource price turbulence and macroeconomic adjustment for a resource exporter: a conceptual framework for policy analysis. In M. Pahlavani & K. Tayebi (Eds.), The 7th APEF International Conference on East and West Asian Trade and Economic Relations: Opportunities, Challenges and Outcomes (p. [31]). Iran: University of Isfahan.

Scopus Eid


  • 2-s2.0-74349101123

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2426&context=infopapers

Ro Metadata Url


  • http://ro.uow.edu.au/infopapers/1406

Start Page


  • [31]

Place Of Publication


  • http://www.apef-conf.com/en_default.asp

Abstract


  • The increased demand for energy and other resources in global markets, particularly arising from the

    rapidly developing economies of China and India, has resulted in considerable turbulence in resource

    prices, and most obviously that of oil. The recent magnitude of change, both positive and negative, in

    resource prices and their macroeconomic implications is of considerable contemporary importance for

    both resource importing and exporting economies. For a resource exporting economy, such as that of

    Australia, the resource price boom had a number of beneficial effects: increased government taxation

    revenues, increased employment and higher wages in the resource and resource related sectors,

    increased spending in the domestic economy and buoyant economic growth, increased resource exports

    to the booming economies of China and India and a stronger domestic currency with beneficial effects

    upon inflation. On the other hand these developments are likely to have adverse effects on the non

    resource sector that is subject to more competition for limited resources, a stronger exchange rate

    results in a loss of international competitiveness and reduced exports, a loss of employment in the non

    resource sector which is likely to be more labour intensive, and an eventual slow down in the overall

    economy. These positive and negative effects, and the overall impact of a resource price boom, will

    fundamentally require closer analysis of the structure of the economy under scrutiny. In this context the

    policy response by government is likely to be crucial in producing overall positive effects. The

    objective of this paper is to provide an analytical framework that can be utilised for a resource

    exporting economy for this purpose.

Publication Date


  • 2008

Citation


  • Cox, G. M. & Harvie, C. (2008). Resource price turbulence and macroeconomic adjustment for a resource exporter: a conceptual framework for policy analysis. In M. Pahlavani & K. Tayebi (Eds.), The 7th APEF International Conference on East and West Asian Trade and Economic Relations: Opportunities, Challenges and Outcomes (p. [31]). Iran: University of Isfahan.

Scopus Eid


  • 2-s2.0-74349101123

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2426&context=infopapers

Ro Metadata Url


  • http://ro.uow.edu.au/infopapers/1406

Start Page


  • [31]

Place Of Publication


  • http://www.apef-conf.com/en_default.asp