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International comparison of industry productivity

Author

Listed:
  • Adam Young

    (Treasury, Government of Australia)

  • Joann Wilkie

    (Treasury, Government of Australia)

  • Robert Ewing

    (Treasury, Government of Australia)

  • Jyoti Rahman

    (Treasury, Government of Australia)

Abstract

The United States has long been considered the world’s productivity frontier, maintaining a sizeable aggregate productivity gap with Australia over the past quarter century. This paper finds that Australia’s industry structure does not appear to make a major difference to Australia’s productivity gap with the US, suggesting that the gap arises mainly from differences in productivity levels within industries. Using new data from the EU Klems project, this paper finds that Australia’s productivity level relative to the US differs markedly across industries.

Suggested Citation

  • Adam Young & Joann Wilkie & Robert Ewing & Jyoti Rahman, 2008. "International comparison of industry productivity," Economic Roundup, The Treasury, Australian Government, issue 3, pages 45-61, October.
  • Handle: RePEc:tsy:journl:journl_tsy_er_2008_3_2
    as

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    File URL: http://archive.treasury.gov.au/documents/1421/PDF/04_International_comparison_industry_productivity.pdf
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    References listed on IDEAS

    as
    1. Bryn Battersby, 2006. "Does distance matter? The effect of geographic isolation on productivity levels," Treasury Working Papers 2006-03, The Treasury, Australian Government, revised Apr 2006.
    2. Timmer, Marcel & Ypma, Gerard & van Ark, Bart van, 2007. "PPPs for Industry Output: A New Dataset for International Comparisons," GGDC Research Memorandum GD-82, Groningen Growth and Development Centre, University of Groningen.
    3. Bryn Battersby, 2007. "Does distance matter?: The effect of geographic isolation on productivity levels," OECD Economic Studies, OECD Publishing, vol. 2006(1), pages 205-225.
    4. Robert Ewing & Sian Fenner & Steven Kennedy & Jyoti Rahman, 2007. "Recent productivity outcomes and Australia’s potential growth," Economic Roundup, The Treasury, Australian Government, issue 3, pages 49-71, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    industry; productivity;

    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

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