Labour productivity and energy intensity in Australia 1974–87: An input-output analysis

Abstract

Energy and labour productivity in Australia is examined using the notion of vertical integration in an input-output framework. Results indicate a decline in productivity growth rates during the 1978–1982 period for both energy and labour. Energy productivity growth was negative during this period. The productivity slowdown was pronounced in the natural resource sectors, agriculture, food products, and minerals. Results indicate that movements in primary input efficiency are positively correlated suggesting that input complementarity may override substitution effects during macroeconomic shocks.