The dynamics of resource-based economic development: evidence from Australia and Norway

Australia and Norway have achieved modern levels of development as resourcebased

economies, thus avoiding the so-called resource curse. Their ability to

achieve this rested heavily on repeated diversification into new resource products

and industries. These processes relied largely on innovation, confirming the close

ties that have existed between resource-based industries and knowledgeproducing

and disseminating sectors of society. We develop a resource-based diversification

model that analyses the interaction between “enabling sectors” and

resource industries and apply it to the historical experience of the two countries.