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 varia...

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Main Authors: Agbenyegah, Benjamin K., Bloch, Harry
Format: Conference Paper
Published: The Economic Society of Australia 2008
Subjects:
Online Access:http://www.ace08.com.au/
http://hdl.handle.net/20.500.11937/39074
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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.
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format Conference Paper
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institution Curtin University Malaysia
institution_category Local University
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publishDate 2008
publisher The Economic Society of Australia
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spelling curtin-20.500.11937-390742017-01-30T14:30:02Z 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 Conference Paper http://hdl.handle.net/20.500.11937/39074 http://www.ace08.com.au/ The Economic Society of Australia restricted
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://www.ace08.com.au/
http://hdl.handle.net/20.500.11937/39074