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As Dino said if you do it a too big a scale you can hurt your economy quite a lot.
Playing Persia and Japan I've had to seed the economy by building infrastructure and then kick start the resources.
I allow foreign investment where I can, so they are also building. Generating jobs and resources.
While I do get grumpy when the private or foreign investors build things that I don't really want to start off with, by the 1880's I' mostly building infrastructure and Admin to support it.
And occasionally have to build a couple of mines if the price is getting out of whack, or build 3 or 4 Motor Industries to stimulate demand.
Having said that, if I'm doing a switch of production methods, at the start I'll only pick a state with a couple of mines/factories to begin with to get it all moving.
The AI isn't perfect and there are some things that feel wrong or incomplete in the game, but generally I think the economy works fairly well apart from there not being enough global demand near the end because most countries/blocs are self-sustaining.
I haven't gotten to that phase of the game in patch where electricity is local, but I can just tell from how much of a pain-in-the-ass managing transportation is that electricity is going to be even more so.