Growth and productivity in Australia
This paper empirically investigates and identifies the main contributing factors to output and productivity growth in Australia for the period 1950-2005. Cointegration and a vector error-correction model are used along with Granger causality tests, impulse response functions and forecast error vari...
| Main Authors: | , |
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| Format: | Working Paper |
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Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology
2008
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| Online Access: | http://hdl.handle.net/20.500.11937/12443 |
| _version_ | 1848748077718962176 |
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| author | Agbenyegah, Benjamin K. Bloch, Harry |
| author_facet | Agbenyegah, Benjamin K. Bloch, Harry |
| author_sort | Agbenyegah, Benjamin K. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper empirically investigates and identifies the main contributing factors to output and productivity growth in Australia for the period 1950-2005. Cointegration and a vector error-correction model are used along with Granger causality tests, impulse response functions and forecast error variance decomposition analyses to achieve these objectives. Accumulation of human capital and investments in information and communications technology (ICT) are identified as significant in the cointegration analysis of production in Australia and should be included in the long-run production relationship along with fixed capital and labour employed. The vector-error correction model estimates further provide evidence that human capital and ICT are important drivers of output growth in Australia, so their omission from standard productivity measures leads to inaccurate measures and may mislead policy formulation, planning and budgeting decisions. |
| first_indexed | 2025-11-14T06:59:19Z |
| format | Working Paper |
| id | curtin-20.500.11937-12443 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:59:19Z |
| publishDate | 2008 |
| publisher | Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-124432017-01-30T11:30:52Z Growth and productivity in Australia Agbenyegah, Benjamin K. Bloch, Harry impulse response functions Granger causality human capital and ICT economic growth Australia forecast error variance decomposition cointegration productivity This paper empirically investigates and identifies the main contributing factors to output and productivity growth in Australia for the period 1950-2005. Cointegration and a vector error-correction model are used along with Granger causality tests, impulse response functions and forecast error variance decomposition analyses to achieve these objectives. Accumulation of human capital and investments in information and communications technology (ICT) are identified as significant in the cointegration analysis of production in Australia and should be included in the long-run production relationship along with fixed capital and labour employed. The vector-error correction model estimates further provide evidence that human capital and ICT are important drivers of output growth in Australia, so their omission from standard productivity measures leads to inaccurate measures and may mislead policy formulation, planning and budgeting decisions. 2008 Working Paper http://hdl.handle.net/20.500.11937/12443 Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology fulltext |
| spellingShingle | impulse response functions Granger causality human capital and ICT economic growth Australia forecast error variance decomposition cointegration productivity Agbenyegah, Benjamin K. Bloch, Harry Growth and productivity in Australia |
| title | Growth and productivity in Australia |
| title_full | Growth and productivity in Australia |
| title_fullStr | Growth and productivity in Australia |
| title_full_unstemmed | Growth and productivity in Australia |
| title_short | Growth and productivity in Australia |
| title_sort | growth and productivity in australia |
| topic | impulse response functions Granger causality human capital and ICT economic growth Australia forecast error variance decomposition cointegration productivity |
| url | http://hdl.handle.net/20.500.11937/12443 |