MACRO-ECONOMIC IMPORTANCE OF COAL INDUSTRIES IN AUSTRALIA, CHINA AND MONGOLIA; THE EXAMINATION OF THE GREGORY EFFECT IN THE THREE COUNTRIES

Abstract

This paper outlines the coal industries in Australia, China and Mongolia and examines of their economic importance, describing a range of developments. Because this industry is an indispensable part of these three countries’ economies, the report compares and calculates its performance with the macroeconomic indicators such as GDP, foreign trade, and mining industry figures.
The report is based on one of the expressions of the natural resource curse known as the “Gregory effect” and the information of these three countries’ coal industries, to analyze features of the Gregory effect in their economies. The findings show that some apparent evidence of the Gregory effect has been observed in the Australian and Mongolian cases, such as the fluctuations in their current accounts the value of their national currency. In the case of China, however, these macroeconomic indicators could not apply as evidence related to the Gregory effect.