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Interstate Comparison of Output and Productivity in the Australian Agricultural Sector, 1991 to 1999

Listed author(s):
  • Dr. Boon Lee

The paper examines the output and productivity performance of the Australian Agriculture sector by state from 1991 to 1999. The aim of the paper is two-fold. First, the paper is a pioneer in a series which compares the performance of each Australian state by sector starting with the Agriculture sector. Second, it introduces the Geary-Khamis (GK) method for derivation of appropriate currency converters or purchasing power parities (PPPs) to enable proper quantification of real output and productivity at the multilateral level. It is essential to use appropriate PPPs as the differences in prices of farm commodities across states pose the problem of aggregation of real output. For the benchmark year 1996-97, gross value of agricultural production reveal that Victoria was 73% of NSW level, based on Australian Bureau of Statistics data when price differentials are not taken into consideration. However, when appropriate PPPs were used, results showed that Victoria’s level had gone up to 88% of NSW level. In terms of value added, Victoria’s level with respect to NSW was 89% based on actual values and 106% based on Geary-Khamis PPPs.

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Paper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 161.

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Date of creation: 20 Sep 2003
Handle: RePEc:qut:dpaper:161
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  1. Strappazzon, L. & Mullen, J.D. & Cox, T.L., 1996. "Comparing Measures of Productivity Growth for Australian Broadacre Agriculture," 1996 Conference (40th), February 11-16, 1996, Melbourne, Australia 156457, Australian Agricultural and Resource Economics Society.
  2. Mullen, John D. & Cox, Thomas L., 1996. "Measuring Productivity Growth In Australian Broadacre Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(03), December.
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