5260.0.55.001 - Information paper: Experimental Estimates of Industry Multifactor Productivity, 2007  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 07/09/2007  First Issue
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Contents >> Mining >> Summary

SUMMARY

There is no necessary reason why Mining MFP should have increased because incomes have increased. The evidence points to MFP declining or having very little growth. There was no growth in output accompanying the growth in both inputs. There is also the possibility that lags in new investment becoming productive is part of the reason why productivity is declining, but this requires further investigation.


A number of measurement issues need further research and should be taken into consideration when interpreting the Mining productivity estimates. These areas include capacity utilisation and the impact of possible compositional changes.


There are also two other areas for further research that may improve the estimates. The first is examining the scope of assets, primarily as subsoil assets are not included in the capital services measure for Mining. The other issue that requires further investigation relates to the possibility that the full extent of the construction activity, that is mine development, is not being fully captured in the output estimates of the industry.



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