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The Dynamic Effects of the US Productivity Boom on Australia

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Author Info
RICHARD G. HARRIS
PETER E ROBERTSON

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Abstract

How has the USA's 'new economy' productivity boom affected Australia? We consider this question using a dynamic multisector growth model of the Australian and US economies. We find that productivity growth in the US durables sector generates small but important gains to Australia. We find that the transmission of growth is generated through increased export demand for agriculture. Consequently, the USA's productivity growth tends to favour Australia's traditional export sectors. Likewise, it increases the relative demand for less skilled labour in Australia and reduces the demand for more skilled labour and higher education. Copyright © 2007 The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 83 (2007)
Issue (Month): s1 (09)
Pages: S35-S45
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Handle: RePEc:bla:ecorec:v:83:y:2007:i:s1:p:s35-s45

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This page was last updated on 2009-11-22.

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