Australia’s Mining Productivity Decline: Implications for MFP Measurement
This paper investigates the mining sector’s poor productivity performance as measured by the growth accounting formula for multifactor productivity (MFP) index during the recent mining boom in Australia. We provide an alternative measure of productivity growth by estimating a translog variable cost...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
Springer New York LLC
2014
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/41561 |
| _version_ | 1848756179641040896 |
|---|---|
| author | Zheng, S. Bloch, Harry |
| author_facet | Zheng, S. Bloch, Harry |
| author_sort | Zheng, S. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper investigates the mining sector’s poor productivity performance as measured by the growth accounting formula for multifactor productivity (MFP) index during the recent mining boom in Australia. We provide an alternative measure of productivity growth by estimating a translog variable cost function, with parameters that separate productivity growth due to technical change from that due to the effects of returns to scale, capacity utilisation and natural resource inputs. The results show that the average MFP growth in Australian mining based on the dual cost-function measure of technical change is 2 % over the sample period 1974–1975 to 2007–2008, rather than -0.2 % from the published index. The difference arises because declining natural resource inputs, the effects of capacity utilisation and returns to scale have all reduced the ‘true’ MFP growth. |
| first_indexed | 2025-11-14T09:08:05Z |
| format | Journal Article |
| id | curtin-20.500.11937-41561 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:08:05Z |
| publishDate | 2014 |
| publisher | Springer New York LLC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-415612019-02-19T05:35:23Z Australia’s Mining Productivity Decline: Implications for MFP Measurement Zheng, S. Bloch, Harry Measurement Mining Productivity This paper investigates the mining sector’s poor productivity performance as measured by the growth accounting formula for multifactor productivity (MFP) index during the recent mining boom in Australia. We provide an alternative measure of productivity growth by estimating a translog variable cost function, with parameters that separate productivity growth due to technical change from that due to the effects of returns to scale, capacity utilisation and natural resource inputs. The results show that the average MFP growth in Australian mining based on the dual cost-function measure of technical change is 2 % over the sample period 1974–1975 to 2007–2008, rather than -0.2 % from the published index. The difference arises because declining natural resource inputs, the effects of capacity utilisation and returns to scale have all reduced the ‘true’ MFP growth. 2014 Journal Article http://hdl.handle.net/20.500.11937/41561 10.1007/s11123-012-0329-4 Springer New York LLC fulltext |
| spellingShingle | Measurement Mining Productivity Zheng, S. Bloch, Harry Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title | Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title_full | Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title_fullStr | Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title_full_unstemmed | Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title_short | Australia’s Mining Productivity Decline: Implications for MFP Measurement |
| title_sort | australia’s mining productivity decline: implications for mfp measurement |
| topic | Measurement Mining Productivity |
| url | http://hdl.handle.net/20.500.11937/41561 |