The data show that investment by firms in mining-exposed industries in Queensland and Western Australia has declined sharply since 2012, whereas investment by firms in other industries has remained broadly unchanged. That is, the effect of the mining investment rise and fall has been larger than we initially anticipated because of the spillovers to other parts of the local economies.
Firms' and shareholders' reduced appetite for (and assessment of) risk Investment could be held back if firms have become more risk averse or if they have reassessed the likelihood of bad outcomes. While it is difficult to differentiate between these two, there are some signs that suggest that one or both have changed post-crisis.