The role of export composition in export-led growth in Australia and its regions

Abstract

The export-led economic growth hypothesis is explored at the sectoral level for Australia and its regions. The merchandise exports data can be disaggregated into four broad sectors: (i) Agriculture, (ii) Mining and Fuels, (iii) Manufacturing and, (iv) Other. The results reveal that Mining and Fuels exports have played a crucial role in driving economic growth in Australia nationally and in three of its regions, New South Wales, Queensland, and Western Australia, and that the growth path of each region is unique.