Growth in a Small Open Economy: An Historical View

  • Ian McLean
Chapter

Abstract

One theme of this chapter is that growth in the Australian economy during the postwar period has been shaped by the same forces which, broadly, accounted for economic growth in earlier periods. This substantial continuity should serve to caution students of recent economic growth against adopting the convenient assumption that more distant experience is not relevant to their inquiries. The second and closely related theme is that the rate of growth since the mid-nineteenth century has been determined by international economic influences to a greater degree than is usually recognised. These external influences include not only direct links between domestic product and factor markets and the world economy, but also the implications for growth of domestic policies adopted in response to overseas economic conditions. Once the importance of the international environment to long-run growth is recognised, an appropriate historical perspective is provided from which to examine the growth performance of the Australian economy during the more recent past.

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© Centre for Economic Policy Research 1989

Authors and Affiliations

  • Ian McLean

There are no affiliations available

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