Productivity and Policy Reform in Australia
Australia has historically been Canada's poorer cousin. But a pick-up in productivity growth in the 1990s has raised Australian living standards to Canadian levels. In this article, Dean Parham of the Australian Productivity Commission provides an overview of Australian economic performance and the policy reforms that turned around Australia's laggard productivity growth. He first points out that during the first half of the 20th century Australia enjoyed one of the highest levels of labour productivity in the world. But Australia never experienced productivity convergence in the postwar period up to the 1990 and saw its productivity and GDP per capita ranking decline over this period. Productivity growth then picked up in the 1990s, with output per hour advancing 2.3 per cent per year in 1990-2001 compared to 1.5 per cent in 1973-1990. It was increased multifactor productivity growth, not capital deepening, that drove this acceleration. Parham makes the case that policy reforms explain much of Australia's improved productivity performance. He identifies three broad areas of policy reform as particularly important in fostering productivity growth: sharper competition; greater openness to trade, investment and technology; and greater flexibility for businesses to adjust production and distribution processes. These reforms spurred the Australian economy to to embark upon a much delayed productivity catch-up.
Volume (Year): 5 (2002)
Issue (Month): (Fall)
|Contact details of provider:|| Postal: |
Web page: http://www.csls.ca/
More information through EDIRC
|Order Information:|| Web: http://www.csls.ca Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002.
"Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(1), pages 339-376, February.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
- Ana Aizcorbe, 2002. "Why are semiconductor prices falling so fast? Industry estimates and implications for productivity measurement," Finance and Economics Discussion Series 2002-20, Board of Governors of the Federal Reserve System (U.S.).
When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:5:y:2002:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Whitney Hamilton)The email address of this maintainer does not seem to be valid anymore. Please ask Whitney Hamilton to update the entry or send us the correct address
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.