IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2004-144.html
   My bibliography  Save this paper

Regional Economic Disparities in Australia

Author

Listed:
  • Ms. Uma Ramakrishnan
  • Mr. Martin D. Cerisola

Abstract

Australia's remarkable economic performance during the 1990s has not resulted in a significant convergence of real per capita income, output, and employment levels across the country's states and territories. This paper explores the role of certain economic rigidities that may have contributed to the lack of convergence, including rigidities in labor markets and in the structure of federal government transfers to households and subnational governments. The analysis suggests that the wage awards system has restricted the adjustment of real wages to productivity differentials, thus contributing to higher unemployment rates in some states. Federal government transfers to households also appear to have adversely affected work incentives in high unemployment states by limiting participation in the labor force.

Suggested Citation

  • Ms. Uma Ramakrishnan & Mr. Martin D. Cerisola, 2004. "Regional Economic Disparities in Australia," IMF Working Papers 2004/144, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/144
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=17615
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Phillip L Swagel & Mr. Steven V Dunaway & Mr. Martin D Kaufman, 2003. "Regional Convergence and the Role of Federal Transfers in Canada," IMF Working Papers 2003/097, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Capella-Ramos, João & Checherita-Westphal, Cristina & Leiner-Killinger, Nadine, 2020. "Fiscal transfers and economic convergence," Occasional Paper Series 252, European Central Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Basher, Syed A. & Fachin, Stefano, 2008. "The long-term decline of internal migration in Canada – Ontario as a case study," MPRA Paper 6685, University Library of Munich, Germany.
    2. Bilal MEHMOOD & Parvez AZIM, 2013. "Does ICT Participate in Economic Convergence among Asian Countries: Evidence from Dynamic Panel Data Model," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 17(2), pages 7-16.
    3. Christian Lessmann, 2012. "Regional Inequality and Decentralization: An Empirical Analysis," Environment and Planning A, , vol. 44(6), pages 1363-1388, June.
    4. Burret, Heiko T. & Feld, Lars P. & Schaltegger, Christoph A., 2022. "Fiscal federalism and economic performance new evidence from Switzerland," European Journal of Political Economy, Elsevier, vol. 74(C).
    5. Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in the ß: Further empirical evidence for Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 33(1), pages 12-29, January.
    6. Shanmugam K. & Shanmugam K. Rangasamy, 2024. "Impact of fiscal transfers policy on regional growth convergence in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(1), pages 38-55, January.
    7. Petr Blížkovský, 2012. "Regional disparities and convergences in America," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 37-46.
    8. Bilal Mehmood & Parvez Azim & Sofia Anwar, 2013. "Economic Convergence in Context of Knowledge Economies in Asia: Instrumental Variable Estimation," Oeconomics of Knowledge, Saphira Publishing House, vol. 5(1), pages 15-28, January.
    9. Alberto Baffa, 2019. "Il nuovo sistema di finanziamento e perequazione per le funzioni non essenziali delle regioni italiane: una simulazione degli effetti redistributivi," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(3), pages 7-40.
    10. Petr Blizkovsky, 2012. "Are We Living in a Converging World? Regional Disparities and Convergences from a Global Perspective," Research in World Economy, Research in World Economy, Sciedu Press, vol. 3(2), pages 41-51, September.
    11. Christian Leßmann, 2006. "Fiscal Decentralization and Regional Disparity: A Panel Data Approach for OECD Countries," ifo Working Paper Series 25, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Capella-Ramos, João & Checherita-Westphal, Cristina & Leiner-Killinger, Nadine, 2020. "Fiscal transfers and economic convergence," Occasional Paper Series 252, European Central Bank.
    13. Christian Lessmann, 2012. "Regional inequality and decentralization: an empirical analysis," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1363-1388, June.
    14. Henri Capron, 2007. "Fédéralisme, transferts interrégionaux et croissance régionale," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 45-63.
    15. Teymur Rahmani & Kolsoom Roshani & Masoume Emami Kalaee, 2016. "The Impact of Consuming Petroleum Products on Economic Growth and Regional Convergence in Iran," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(1), pages 14-24, February.
    16. Nickel, Christiane & Checherita-Westphal, Cristina & Rother, Philipp, 2009. "The role of fiscal transfers for regional economic convergence in Europe," Working Paper Series 1029, European Central Bank.
    17. Kessler, Anke & Lessmann, Christian, 2010. "Interregional Redistribution and Regional Disparities: How Equalization Does (Not) Work," CEPR Discussion Papers 8133, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2004/144. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.