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Relative assistance to Australian agriculture and manufacturing since Federation

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  • Peter Lloyd
  • Donald MacLaren

Abstract

type="main" xml:id="ajar12070-abs-0001"> 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

  • Peter Lloyd & Donald MacLaren, 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), pages 159-170, April.
  • Handle: RePEc:bla:ajarec:v:59:y:2015:i:2:p:159-170
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    File URL: http://hdl.handle.net/10.1111/ajar.2015.59.issue-2
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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. 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.
    4. 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, 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.
    2. repec:spr:minecn:v:31:y:2018:i:1:d:10.1007_s13563-017-0133-8 is not listed on IDEAS

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