Recent productivity outcomes and Australia’s potential growth
AbstractIn recent years, employment has grown strongly while output has grown modestly. This implies a weak growth in labour productivity that is difficult to interpret. In this article, we explore some possible explanations for recent economic growth and labour productivity outcomes, with a focus on developments in the composition of growth. We also examine whether recent productivity outcomes hold any implications for the Australian economy's potential growth rate. We find that recent weak growth in output and strong growth in labour are indeed unusual when compared with previous experiences. However, we also find that the uncommon circumstances surrounding Australia’s mining boom explain some of the output and labour conundrum.
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Bibliographic InfoArticle provided by Treasury, Australian Government in its journal Economic Roundup.
Volume (Year): (2007)
Issue (Month): 3 (September)
capacity; capital; economic growth; labour; productivity;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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