Productivity growth in Australian manufacturing: a vintage capital model

Abstract

Uses a model of technical change embodied in capital equipment to analyse average labour productivity growth. Determinants of productivity growth identified in this analysis are: (1) the rate of labour‐saving technical change; (2) the differential in the rates of change of wages and the rental price of capital; and (3) the rate of growth of industry productive capacity. Finds evidence that each of the identified factors has a positive and statistically significant relationship to average labour productivity growth in a cross‐section of Australian manufacturing industries.

Citation

Bloch, H. and Madden, G. (1995), "Productivity growth in Australian manufacturing: a vintage capital model", International Journal of Manpower, Vol. 16 No. 1, pp. 22-31. https://doi.org/10.1108/01437729510082768