The Declining Importance of Tradable Goods Manufacturing in Australia and New Zealand: How Much Can Growth Theory Explain?

January 1, 2009

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Format: Chicago

Benjamin L Hunt. The Declining Importance of Tradable Goods Manufacturing in Australia and New Zealand: How Much Can Growth Theory Explain?, (USA: International Monetary Fund, 2009) accessed December 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In this paper, the IMF's new Global Economy Model (GEM) is used to estimate the contribution of unbalanced growth to the decline in the share of goods production in Australia and New Zealand. The simulation results suggest that faster productivity growth in the tradable goods sector in Australia, New Zealand, and their major trading partners accounts for a significant portion of the relative decline in the importance of goods production. Over the 1995 to 2004 period, unbalanced growth explains more than 80 percent of the decline in goods production in both countries.

Subject: Commodities, Inflation, Labor, Prices, Production, Productivity

Keywords: Australia, Australia and New Zealand, Deindustrialization, Goods, Goods production, Goods sector, Inflation, New Zealand, Nontradable goods, Price, Productivity, Service price inflation pressure, Tradable goods inflation, Unbalanced growth, Unbalanced growth growth theory, WP

Publication Details

Pages:

17
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/016
Stock No:

WPIEA2009016
ISBN:

9781451871630
ISSN:

1018-5941

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