Economic Change in a Regional Economy: The Case of South Australia, 1980-81 to 1985-86

T. Mules
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T. Mules: University of Adelaide

Economic Analysis and Policy, 1992, vol. 22, issue 1, 39-50

Abstract: Input-output tables for the State of South Australia for 1980-81 and 1985-86 have been compiled by the Centre for South Australian Economic Studies on a consistent basis. Changes in employment multipliers, and value added multipliers, over the period are decomposed into four major effects: (i) import penetration, (ii) structural change, (iii) factor intensity, (iv) an interaction term between (ii) and (iii). The results suggest that import penetration has been the most important source of multiplier change, particularly for multipliers which decreased. Since decreasing multipliers outnumbered increasing multipliers, it is clear that substitution of imports in place of South Australian produced output has been a major economic change over the period. The implication of the change is that the South Australian economy will capture a smaller share of any new economic initiatives than would otherwise be the case.

Date: 1992
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