Understanding Australia’s industry-level productivity dynamics: from measurement to econometric estimation

This thesis investigates a range of issues related to the industry-level productivity growth in Australia. It approaches the issues from three different, but related angles. First, it derives the estimates of the industry-level multifactor productivity (MFP) index for the 12 market-sector industries in Australia using the non-parametric, growth accounting approach. It then seeks to explain the industry-level productivity changes by estimating the relationship between R&D and MFP growth for several one-digit level industries in Australia. The third major part of the thesis attempts to provide some systematic explanations for the poor productivity performance that has been reflected in measured MFP for the mining industry during the recent mining boom in Australia.