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At first the former is more important but in the long run the latter dominates. Yet both internal and external economic aspects are closely related. In Australia, cities developed in advance of their hinterlands. Apart from wool, most Australian industries developed, at first, in order to supply an existing urban market. For example, the influx of workers from rural area’s and migrants pushed forward the building sector.
With the beginnings of a new colony in 1788, capital accumulation, land concentration, foreign trade and free labour markets developed. Australian economy was being set up in a rapidly expanding world market dominated by the expansive phase of the first Industrial Revolution in Britain...
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