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Tracing the Sources of South Australian Economic Slumps

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  • Dou Jiang

Abstract

This article quantitatively investigates economic fluctuations in South Australia from 1990–2014. In particular, the study applies the business cycle accounting method to decompose the economic fluctuations into their sources. The main findings suggest that the low efficiency wedge was the primary source of South Australian economic slumps. Moreover, it is shown that infrastructural and R&D expenditures are important factors in explaining the variation of the efficiency wedge. This conforms with the fact that the South Australian Government is keen to support its development through the economic stimulus plan. Trade openness may also be a contributor.

Suggested Citation

  • Dou Jiang, 2019. "Tracing the Sources of South Australian Economic Slumps," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 52(3), pages 305-320, September.
    • Handle: RePEc:bla:ausecr:v:52:y:2019:i:3:p:305-320
    DOI: 10.1111/1467-8462.12322
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