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Relative assistance to Australian agriculture and manufacturing since Federation

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  • Llyod, Peter
  • MacLaren, Donald

Abstract

This paper quantifies the levels of assistance received by producers of the major agricultural crops and animal products in Australia since Federation and compares this with the level of assistance provided to manufacturing producers. First, we construct a series of the production-weighted average nominal rate of assistance for the whole sector. Then, we compute a measure of the level of assistance received by the Agriculture sector relative to that received by the Manufacturing sector, the Relative Rate of Assistance. Our results show that, from the time of Federation until the 1990s, the economy-wide pattern of industry assistance discriminated persistently and heavily against the Agriculture sector. The policy of ‘protection all round’ pursued by the Country/National Party did not prevent this discrimination. In particular, producers of exportables, such as wool and wheat, were heavily discriminated against. Both the intersectoral bias and the differences in assistance among agricultural producers lowered the incomes of the Agriculture sector and the national income.

Suggested Citation

  • Llyod, Peter & MacLaren, Donald, 2015. "Relative assistance to Australian agriculture and manufacturing since Federation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    • Handle: RePEc:ags:aareaj:280249
    DOI: 10.22004/ag.econ.280249
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    References listed on IDEAS

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    1. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    2. S.F. Harris, 1964. "Some Measures Of Levels Of Protection In Australia'S Rural Industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 8(2), pages 124-144, December.
    3. A. J. Little/, 1962. "Some Aspects Of Government Policy Affecting The Rural Sector Of The Austrblian Economy With Special Reference To The Period 1939/45–19531," The Economic Record, The Economic Society of Australia, vol. 38(83), pages 318-340, September.
    4. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    5. John W. Longworth, 1967. "The Stabilization And Distribution Effects Of The Australian Wheat Industry Stabilization Scheme," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 11(1), pages 20-35, June.
    6. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications - Books, The World Bank Group, number 9436, October.
    7. Harris, S.F., 1964. "Some Measures Of Levels Of Protection In Australia'S Rural Industries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 8(2), pages 1-21, December.
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    Cited by:

    1. Kym Anderson, 2026. "Forces Behind South Australia's Unusual Structural Changes Since 1840," Departmental Working Papers 2026-02, The Australian National University, Arndt-Corden Department of Economics.
    2. Kym Anderson, 2018. "Mining’s impact on the competitiveness of other sectors in a resource-rich economy: Australia since the 1840s," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 141-151, May.
    3. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    4. Timothy Clune & Ana Horta, 2020. "Climate Variation—A Perceived Drag on Rural Business Performance," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    5. Kym Anderson, 2016. "Sectoral trends and shocks in Australia’s economic growth," Departmental Working Papers 2016-18, The Australian National University, Arndt-Corden Department of Economics.
    6. Kym Anderson, 2022. "Structural transformation in growing open economies: Australia s experience," Departmental Working Papers 2022-13, The Australian National University, Arndt-Corden Department of Economics.
    7. Kym Anderson, 2023. "Why did agriculture s share of Australian GDP not decline for a century?," Departmental Working Papers 2023-09, The Australian National University, Arndt-Corden Department of Economics.
    8. Kym Anderson, 2017. "Sectoral Trends and Shocks in Australia's Economic Growth," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(1), pages 2-21, March.

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