## Does Technological Diffusion Explain Australia’s Productivity Performance?

_IMF Working Papers, January 1, 2008_

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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

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### 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.

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## Content in this bundle

- **6. Australian Industries MFP Levels**
  - [6. Australian Industries MFP Levels (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp0804.pdf.md){rel="alternate" type="text/markdown"}
  - [6. Australian Industries MFP Levels (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2008/_wp0804.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/does-technological-diffusion-explain-australias-productivity-performance-21550_