Abstract:
This paper examines the pace of structural change in manufacturing industry in the six Australian states between 1971 and 1986. An index of compositional change is defined and measured for each state and nationally in the sample period. It suggests an increase in the pace of structural change in manufacturing in Australia as a whole, but a disparate pattern in both the pace and the direction of change among the states. About half of all structural change is reversed within three years. The type of industries which have been gaining in their share of overall manufacturing do not appear to be technologically sophisticated. Rather they are the more traditional natural resource based industries.