IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2004-144.html
   My bibliography  Save this paper

Regional Economic Disparities in Australia

Author

Listed:
  • Ms. Uma Ramakrishnan
  • Mr. Martin D. Cerisola

Abstract

Australia's remarkable economic performance during the 1990s has not resulted in a significant convergence of real per capita income, output, and employment levels across the country's states and territories. This paper explores the role of certain economic rigidities that may have contributed to the lack of convergence, including rigidities in labor markets and in the structure of federal government transfers to households and subnational governments. The analysis suggests that the wage awards system has restricted the adjustment of real wages to productivity differentials, thus contributing to higher unemployment rates in some states. Federal government transfers to households also appear to have adversely affected work incentives in high unemployment states by limiting participation in the labor force.

Suggested Citation

  • Ms. Uma Ramakrishnan & Mr. Martin D. Cerisola, 2004. "Regional Economic Disparities in Australia," IMF Working Papers 2004/144, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2004/144
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=17615
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Phillip L Swagel & Mr. Steven V Dunaway & Mr. Martin D Kaufman, 2003. "Regional Convergence and the Role of Federal Transfers in Canada," IMF Working Papers 2003/097, International Monetary Fund.
    2. Unknown, 1999. "Impact of Competition Policy Reforms on Rural and Regional Australia," Inquiry Reports 31892, Productivity Commission.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Capella-Ramos, João & Checherita-Westphal, Cristina & Leiner-Killinger, Nadine, 2020. "Fiscal transfers and economic convergence," Occasional Paper Series 252, European Central Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Basher, Syed A. & Fachin, Stefano, 2008. "The long-term decline of internal migration in Canada – Ontario as a case study," MPRA Paper 6685, University Library of Munich, Germany.
    2. Madden, John Robert & Giesecke, James, 2002. "Competition reforms and collaborative federalism: a dynamic multiregional applied general equilibrium analysis," ERSA conference papers ersa02p343, European Regional Science Association.
    3. Bill Pritchard & Neil Argent & Scott Baum & Lisa Bourke & John Martin & Phil Mcmanus & Anthony Sorensen & Jim Walmsley, 2012. "Local -- If Possible: How the Spatial Networking of Economic Relations amongst Farm Enterprises Aids Small Town Survival in Rural Australia," Regional Studies, Taylor & Francis Journals, vol. 46(4), pages 539-557, June.
    4. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    5. Bilal MEHMOOD & Parvez AZIM, 2013. "Does ICT Participate in Economic Convergence among Asian Countries: Evidence from Dynamic Panel Data Model," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 17(2), pages 7-16.
    6. Fred Argy, 2002. "National Competition Policy: Some Issues," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 9(1), pages 33-46.
    7. James Giesecke, 2003. "Targeting Regional Output with State Government Fiscal Instruments: a Dynamic Multi‐regional CGE Analysis," Australian Economic Papers, Wiley Blackwell, vol. 42(2), pages 214-233, June.
    8. N. Islam, 2000. "An Analysis of Productivity Growth in Western Australian Agriculture," Economics Discussion / Working Papers 00-15, The University of Western Australia, Department of Economics.
    9. H. Ahammad, 2000. "The Effects of Growth in Agriculture on the Western Australian Economy: A CGE investigation," Economics Discussion / Working Papers 00-08, The University of Western Australia, Department of Economics.
    10. Heather Roper & Chris Sayers & Andrew Smith, 2006. "Stranded Irrigation Assets," Staff Working Papers 0605, Productivity Commission, Government of Australia.
    11. Christian Lessmann, 2012. "Regional Inequality and Decentralization: An Empirical Analysis," Environment and Planning A, , vol. 44(6), pages 1363-1388, June.
    12. Brendan Gleeson, 2000. "Annus Horribilis," Environment and Planning A, , vol. 32(3), pages 384-390, March.
    13. Freebairn, John W., 2003. "Economic policy for rural and regional Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), pages 1-26, September.
    14. Bob Lindner, 2004. "Privatised provision of essential plant breeding infrastructure," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 301-321, June.
    15. Burret, Heiko T. & Feld, Lars P. & Schaltegger, Christoph A., 2022. "Fiscal federalism and economic performance new evidence from Switzerland," European Journal of Political Economy, Elsevier, vol. 74(C).
    16. George Verikios & Xiao-guang Zhang, 2013. "The distributional effects of the Hilmer reforms on the Australian gas industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 159-177, April.
    17. Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in the ß: Further empirical evidence for Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 33(1), pages 12-29, January.
    18. MacAulay, T. Gordon, 2000. "Competition Policy in Agriculture: A Review of Methods," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123697, Australian Agricultural and Resource Economics Society.
    19. Phil Lewis & Michael Corliss, 2011. "The economic boom, population and structural change and the market for tradespersons," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(3), pages 289-305.
    20. Shanmugam K. & Shanmugam K. Rangasamy, 2024. "Impact of fiscal transfers policy on regional growth convergence in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(1), pages 38-55, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2004/144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.