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The Australian Growth Experience (1960-2000): R&D-Based, Human Capital-Based, Or Just Steady State Growth?

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  • Yuan K. Chou

Abstract

This paper examines the sources of economic growth in Australia from 1960 to 2000 by adapting and modifying a framework developed in Jones (2002), whereby long-run growth is driven by the global discovery of new ideas, which in turn is tied to world population growth. We find that, contrary to the conventional view as suggested by sustained growth rates and a stable capital-output ratio over the last several decades, Australia is clearly not on its steady-state balanced growth path. Australia has benefited from increases in educational attainment and research intensity: 28 percent of Australian growth between 1960 and 2000 is attributable to the rise in educational attainment, about 40 to 60 percent is attributable to increasing research intensity, while only 20 to 30 percent is due to long-run population growth in the ideaproducing countries.

Suggested Citation

  • Yuan K. Chou, 2002. "The Australian Growth Experience (1960-2000): R&D-Based, Human Capital-Based, Or Just Steady State Growth?," Department of Economics - Working Papers Series 855, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:855
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-02/855.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jangraiz KHAN, 2015. "The Role of Research and Development in Economic Growth: A Review," Journal of Economics Bibliography, KSP Journals, vol. 2(3), pages 128-133, September.
    2. Ramesh Chandra Das, 2020. "Interplays among R&D spending, patent and income growth: new empirical evidence from the panel of countries and groups," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-22, December.
    3. Ramesh Chandra Das & Sujata Mukherjee, 2020. "Do Spending on R&D Influence Income? An Enquiry on the World’s Leading Economies and Groups," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1295-1315, December.
    4. Xiangfei Ma & Inna Gryshova & Viktoriia Khaustova & Olena Reshetnyak & Maryna Shcherbata & Denys Bobrovnyk & Mykyta Khaustov, 2022. "Assessment of the Impact of Scientific and Technical Activities on the Economic Growth of World Countries," Sustainability, MDPI, vol. 14(21), pages 1-35, November.
    5. Khan, Jangraiz & Rehman Khattak, Naeem Ur, 2014. "The Significance of Research and Development for Economic Growth: The Case of Pakistan," MPRA Paper 56005, University Library of Munich, Germany.
    6. Madalina Tocan, 2023. "The Romanian Research-Development System - An Overview in Global Context," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 11(1), pages 84-91, May.

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