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Measuring Contributions to the Australian Economy: The Benefits of a Fast-Growing Motor Vehicle and Parts Industry

Author

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  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

The contribution of an industry to the economy is often measured by an input-output calculation showing labour used directly in the industry and indirectly via the production of intermediate inputs for the industry. This paper demonstrates an alternative approach based on simulations with a dynamic computable general equilibrium model. Rather than measuring contribution in terms of resources used, we look at the potential contribution of an industry in terms of the effect on economic welfare of improved performance. We apply our methodology to the Australian motor vehicle industry by simulating the impact that this industry could make if it were to achieve higher productivity growth, higher export growth and the production of cars of greater appeal to Australian consumers.

Suggested Citation

  • Peter B. Dixon & Maureen T. Rimmer, 2003. "Measuring Contributions to the Australian Economy: The Benefits of a Fast-Growing Motor Vehicle and Parts Industry," Centre of Policy Studies/IMPACT Centre Working Papers g-138, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-138
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    References listed on IDEAS

    as
    1. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    2. Groenewold, N & Hagger, A J & Madden, J R, 1993. "Measuring Industry Importance: An Australian Application," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 27(2), pages 175-182.
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    Cited by:

    1. Lionel Bopage & Kishor Sharma, 2014. "Liberalization and Structural Change in Australian Automotive Industry: An Analysis of Trade and Productivity Performance: 1962–2008," Global Business Review, International Management Institute, vol. 15(3), pages 447-460, September.
    2. Sanidas, Elias & Jayanthakumaran, Kankesu, 2006. "The Consequences of Trade Liberalisation on the Australian Passenger Motor Vehicle Industry," Economics Working Papers wp06-01, School of Economics, University of Wollongong, NSW, Australia.

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    More about this item

    Keywords

    industry contribution; dynamic CGE analysis; input-output analysis; motor vehicle industry;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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