An article co-authored by a university of Hawaii in Mānoa, the expert received the prize for the best article of 2021 by Economic record. The journal is published on behalf of the Economic Society of Australia and features articles in the theoretical, applied and policy areas of economics and provides a forum for research on the Australian economy.
Sumner La Croix, uh Researcher at the Economics Research Organization and Emeritus Professor of Economics at the uh Mānoa College of Social Sciences, co-author of “Australia’s Forgotten Copper Mining Boom: Understanding How South Australia Avoided Dutch Disease”.
The article explores the impact of a resource (copper) boom that occurred in the 1840s in South Australia. An analysis by La Croix and co-author Edwyna Harris concluded that the Dutch disease (the sudden discovery of a valuable resource that ends up hurting the rest of the economy) did not happen during the resource boom. australian. The economy was unaffected due to increased immigration caused by active migration policies coinciding with the resource boom, which led to a modest increase in wages for skilled workers while maintaining wages for unskilled workers unchanged.
The article was chosen by a panel of experts from among all the articles published in the four issues of Economic record in 2021. The article can be read for free on the journal’s website until October 15.
“Our research shows that well-managed resource booms can be an important source of economic growth for a country,” La Croix said. “Resource booms that reduce economic welfare, such as the discovery of diamonds in Africa, tend to be the result of a weak government unable to enforce property rights over the resource. Governments in the open economies of the United States, Australia and Canada in the 19th and early 20th centuries had the ability to allocate and enforce rights to new mining discoveries, which enabled the boom in resources significantly improve economic growth.
In an announcement, the selection committee said: “While there were many excellent papers, the committee deemed this paper to be a deserving winner of the 2021 ‘Best Paper Award’ due to its strong economic analysis. combining theory and empirical research. , its originality (collection of historical data), and its relevance to understanding Australia’s most recent resource booms and the benefits of active migration policies.