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4.4 Allocation to sub-sectors
The data in tables 4.1 and 4.2 cover nine first division ANZSIC sectors. In order to extend these estimates to 16 industries, the report applies pro-rata allocations to MFP growth and capital deepening in direct proportion to recorded LP growth rates in 16 industries. The rationale behind these calculations is that MFP growth and capital deepening are causally related and positively correlated with LP growth.
There are four major sectors that can be divided into sub-sectors. Due to lack of information, the five other major service sectors cannot be sub-divided. Table 4.4 shows the coefficients used to multiply cumulative MFP growth and cumulative capital deepening of four major sectors in order to obtain estimates for their subsectors. The table presents the coefficients applied to the cumulative figures from 1984–85 to the end year of the four sub-periods used in the multi-period analysis.1
|
|
1984–85 to 1989–90 |
1984–85 to 1993–94 |
1984–5 to 1997–98 |
1984–85 to 2001–02 |
|---|---|---|---|---|
|
Electricity, gas and water |
|
|
|
|
|
Electricity and gas supply; |
1.14 |
1.07 |
1.14 |
1.11 |
|
Water supply, sewerage and drainage |
0.86 |
0.93 |
0.86 |
0.89 |
|
Retail trade |
|
|
|
|
|
Food retailing; |
0.99 |
0.98 |
0.96 |
0.84 |
|
Personal and household good retailing |
1.04 |
1.09 |
1.08 |
1.21 |
|
Motor vehicle retailing and services |
0.96 |
0.92 |
0.96 |
0.95 |
|
Transport |
|
|
|
|
|
Road transport |
0.97 |
0.73 |
0.68 |
0.70 |
|
Air transport/travel |
0.78 |
1.20 |
1.09 |
0.95 |
|
Rail, water and other transport |
1.50 |
1.39 |
1.53 |
1.60 |
|
Storage and transport facilities |
0.75 |
0.67 |
0.71 |
0.75 |
|
Finance and insurance |
|
|
|
|
|
Finance |
1.09 |
1.10 |
1.02 |
1.20 |
|
Insurance |
0.91 |
0.90 |
0.98 |
0.80 |
Source: Allocations based on LP growth rates in table 4.1.
Table B.2 in the appendix present the annual MFP growth rates for 16 industries used in the statistical analysis. In order to save space, the percentages reported are restricted to those used in the one and two-period regressions, but not in the four-period regressions.2 Tables B.3 and B.4 show annual changes in capital-labour ratios. Table B.3 is based on Productivity Commission (2004) estimates; table B.4 on this study's estimates on inflation adjusted changes in capital stocks. These capital deepening estimates are used as explanatory variables in regressions where LP growth is the dependent variable.
1 The four sub-periods are: 1984–85 to 1989–90, 1989–90 to 1993–94, 1993–94 to 1997–98 and 1997–98 to 2001–02.
2 The unreported decomposition results from four-period regressions are in line with those from single-period and two-period regressions.
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