Does Technological Diffusion Explain Australia’s Productivity Performance?
IMF Working Papers, January 1, 2008
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- Does Technological Diffusion Explain Australia’s Productivity Performance?
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Bibliographic details
- Authors: Thierry Tressel
- Published: January 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868661.001
Summary and main findings
- Analyzes the impact of product and labor market policies on technological diffusion and multi-factor productivity (MFP) in a panel of industries in 15 OECD countries over the period 1980 to 2003, with a special focus on Australia.
- Uses a simple convergence empirical framework to show that, on average, convergence of MFP within industries across countries has "slowed-down in the 1990s."
- Finds that Australian industries have "significantly caught-up with industry productivity best practices over the past 16 years."
- Reports that Australian industries "have benefited from the diffusion of Information and Communication Technologies (ICTs)."
- Concludes that reforms of both the labor and product markets since the early 1990s can explain Australia's productivity performance and adoption of ICTs.
Methodology
- Empirical approach: simple convergence framework applied to industry-level MFP across 15 OECD countries.
- Sample period: 1980 to 2003.
- Focus: product market policies, labor market policies, technological diffusion (including ICTs), and multi-factor productivity (MFP).
Policy-relevant implications
- Labor market reforms since the early 1990s are identified as explanatory factors for Australia’s productivity performance.
- Product market reforms since the early 1990s are identified as explanatory factors for Australia’s productivity performance.
- Diffusion of Information and Communication Technologies (ICTs) is linked to the observed catch-up in Australian industry productivity.
Content in this bundle
- 6. Australian Industries MFP Levels