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Privatisation and Economic Growth

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Abstract

The macroeconomic impact of privatisation on growth in Australia is investigated in a growth accounting framework. Separate measures of public and private capital are computed in order to estimate their impacts together with labour on GDP growth for the period 1960-2003. Previous empirical aggregate studies are relatively few. A simple growth rates version is found preferred by stationarity and other tests. Growth of labour input appears to have a strongly positive effect on the growth of GDP. In contrast, growth of public capital has no statistically significant effect on GDP growth, nor on private capital productivity. The data are consistent with the hypothesis that the coefficients of the growth equation are the same before and during privatisation.

Suggested Citation

  • Margaret McKenzie, 2005. "Privatisation and Economic Growth," Economics Series 2005_21, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  • Handle: RePEc:dkn:econwp:eco_2005_21
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    File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2005_21.pdf
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    More about this item

    Keywords

    macroeconomic; growth; capital; public; privatisation; time series; data; estimation; test;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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