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Productivity Growth in Australian Manufacturing Sector: Some New Evidence

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Author Info
Mahadevan, R

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Abstract

This article examines the productivity performance of Australia's manufacturing sector by decomposing its output growth into input growth, technological progress and gains in technical efficiency. This three-way decomposition is done with an improved version of the stochastic frontier model using eight, two-digit industry level data from 1968-69 to 1994-95. Empirical evidence shows that input growth fueled output growth from 1968-69 to 1973-74, but since then, total factor productivity (TFP) growth has been the main contributor of output growth. While the trend of TFP growth was found to be promising for most industries with positive and increasing technological progress, the negative gains from technical efficiency over time is however cause for concern. Copyright 2002 by Taylor and Francis Group

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 9 (2002)
Issue (Month): 15 (December)
Pages: 1017-23
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Handle: RePEc:taf:apeclt:v:9:y:2002:i:15:p:1017-23

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  1. I.K.M. Mokhtarul Wadud & Satya Paul, 2006. "Productivity Growth, Changes in Efficiency and Technical Progress in the Private Sectors of the Australian Economy," Economics Series 2006_14, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
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This page was last updated on 2009-12-5.

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