The Effects of COVID-19 and JobKeeper on Productivity-Enhancing Reallocation in Australia

Productivity, Economic Dynamism and the “Failure of Competition” Narrative*

“…These two findings are consistent, in that while the productivity dispersion between Australian firms in the same industry has not been increasing, Andrews et al . (2022) find that the gap between the Australian frontier firms and the global frontier firms has been widening in a range of industries. In other words, Australian frontier firms are falling further behind global productivity leaders in the same industry.…”

“…Andrews et al . (2022) compare Australian firms to the global productivity frontier by industry. They find that “the productivity gap between the global frontier and Australian firms has grown over time” particularly in the services sector.…”