Sources of Australian labour productivity change 1950-1994

This study examines sources of Australian labour productivity change from 1 950 to 1994. Time-series data are used to estimate a model capturing the in teraction between labour productivity, Fred capital, human capital, telecom munications, trade openness and international competitiveness. Attention is Riven to the time-series properties of these data. ADF tests for unit root s are employed, and the sensitivity of the tests to non-linear transformati ons and structural breaks are considered. Estimates suggest that policies t hat promote investment, economic integration and international competitiven ess will improve short-run labour productivity. In the long run, fired capi tal accumulation is the dominant source of productivity improvement.