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The marketplace for Australian wool relocated from London to the Australian capital cities in the half-century after 1880. This represented a major institutional shift that underpinned the development of the Australian economy and made Australia the centre of the international wool market. We analyse the principal demand and supply changes underlying this market shift. Consolidation of worsted manufacturing, demand diversification, improved transport and communications, Australian dominance of international wool production and the growth of the small grazier, shifted the relative market efficiency in favour of Australian auctions.
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