Issue 2

CHANGES IN THE EXTENT OF INTERSTATE DISPARITIES IN GDP PER HEAD IN AUSTRALIA 1977-78 TO 1994-95: A COMPARISON OF THE FINDINGS OF TWO METHODS OF ANALYSIS

The aim of this paper is to compare the findings that emerge from two different (though related) approaches to analysing changes in the extent of interregional disparities in GDP per head. This is done by examining the situation in Australia over the period 1977-78 to 1994-95, with the eight States and Territories as the regions. The first method of analysis, referred to as the aggregative approach, uses the weighted coefficient of variation as the indicator of change, while the second method, referred to as the disaggregative approach, uses four variables (per capita GDP differentials, population growth rates, GDP growth rates, GDP per head growth rates) and also the unweighted coefficient of variation as indicators of change. In essence, the two methods may also be differentiated by noting that the first method is based on considerations relating to the relative importance of changes in the distribution of population and GDP within the nation as a whole, while the second method is based on the relative importance of these kinds of redistributions in the individual States. It might therefore be said that the orientation of the aggregative approach is towards the nation as a whole, and the orientation of the disaggregative approach is towards the individual States or regions. Because of the emphasis methodology, it has not been possible in this paper to examine any of the causes of the changes that have been noted.
The findings of this paper indicate that the aggregative approach does not identify some of major changes that have occurred in individual States because these States have small proportions of Australia 's population and GDP. In contrast the disaggregative approach concentrates on these changes in the individual States, irrespective of their population and GDP proportions.

PERCY HARRIS

Page Number - 193

THE SOCIAL AND SPATIAL STRUCTURE OF SOUTH­ EAST QUEENSLAND

In order to understand urban development processes we need to develop analytical procedures that recognise the complexity of the urban system and are prepared to draw on the approaches of several disciplines. To this end the analysis provided in this paper is a component of a broader project concerned with developing improved methodologies for the integrated study of social, economic and environmental issues in South East Queensland. In this paper the results of a factorial ecology for the South East Queensland urban region are reported. A brief discussion of urban structural and social change introduces the issues that provide the context for the study and then six measures of socio-economic structure are developed from a factor analysis of data taken from the 1991 Census us of Population and Housing. The reliability, spatial distribution and intercorrelation of these measures is discussed. Further, a cluster analysis of the measures enables the construction of a typology of statistical local areas (SLAs). The six measures and a typology of how they are spatially manifested are useful descriptive tools in themselves but more importantly, they will enable further research on the development of composite quality of life indexes and the links between soc io-economic characteristics and economic and environmental performance.

JOHN WESTERN, ALISON LARNACH

Page Number - 215

THE ECONOMIC IMPACT OF THE OVERSEAS STUDENT INDUSTRY: SPECIAL REFERENCE TO THE WOLLONGONG ECONOMY

This paper estimates the impact of overseas student spending on employment, income, and service exports. It is based on a case stud y of overseas students studying at the University of Wollongong. Results are significant and give encouragement to those arguing for expanding overseas student enrolments on economic grounds. However, to the extent that overseas students consume real resources, there are costs involved in their enrolments in Australian Universities. Some of these costs, along with other potential benefits are identified in this paper, and it is argued that they should be internalised into future plans to expand this industry. Finally, potential impediments to the longer term sustainability of exporting education are ana lysed. In particular, threats to the international standing of Australian Universities, and the degree of overseas student satisfaction in the education services they have purchased.

DARREN MCKAY

Page Number - 239

SPATIAL DIMENSIONS OF RURAL, GENDER SPECIFIC LABOUR FORCE COMMUTING PATTERNS

Participation in urban labour markets, through commuting, is an important component of the set of alternatives facing the rural labour force. Received theory on commuting does not address the importance of the trade centre structure and spatial labour market areas in explaining commuting patterns of a rural labour force. In this paper the role pf space in determining the participation of the rural labour force in urban employment centres is refined to include consideration of the hierarchical position of the centre of employment and of intensity of commuting interaction. It is shown that commutes (by male and female, farm and nonfarm commuters) are longer to higher level centres, that commutes are longer for farm than nonfarm commuters, and that females do not consistently commute shorter distances than males. Females made up the majority of the increase in number of commuters observed between 1981 and 1991. Further, the more remote the LMA, the more prominent were females in the gender composition of commuters. Positive income impacts of commuting by both males and females on rural areas were observed. The magnitude of these impacts varied directly with the intensity of commuter interaction with the urban centre. Commuting to urban places of employment by rural labour force members is a complex form of urbanisation. The context of empirically defined Labour Market Areas and consideration of hierarchical levels of centres, of gender, and of farm/nonfarm status of commuters proved important in refining the understanding of commuting patterns.

M. ROSE OLFERT, JACK C. STABLER

Page Number - 253

A COMPARATIVE EVALUATION OF SHIFT-SHARE MODELS AND THEIR EXTENSIONS

The expansion of shift-share methods and approaches has led to a variety of modifications and extensions. These extensions have been created for different purposes. The result is a confusing array of shift-share modeling options. This paper attempts to offer an evaluation and comparison of the different shift-share formulations. First, we summarize and categorize recent shift-share developments for comparative assessment. Second, we apply a common database to a subset of these methods to illustrate their differences and contributions.

MUSTAFA DINE, KINGSLEY E. HAYNES, LI QIANGSHENG

Page Number - 275

LIBERALISATION AND PRODUCTIVITY GROWTH: EXPERIENCE OF NEPALESE MANUFACTURING

Over the past two decades, there has been a move towards outward orientation in developing countries. Although it is argued than an outward-oriented strategy improves efficiency through competition, large scale production and efficient utilisation of resources, doubts that liberalisation would not solve the problems of least developed countries (LDCs) remain strong. In this paper we shed light on this debate by examining the case of Nepalese manufacturing which has experienced liberalisation reforms since the mid 1980s. We observed an absolute fall in productivity in both the pre-and post-liberalisation periods , indicating that liberalisation reforms alone do not guarantee higher productivity in a LDC like Nepal, probably due to the shortage of skilled labour and poor physical infrastructure.

KISHOR SHARMA

Page Number - 303

DEVELOPMENT POLICY SIMULATION USING MULTIREGIONAL INPUT-OUTPUT ANALYSIS: A CASE STUDY OF SRI LANKA

Infrastructure investments in developing regions should lead to higher productivity and increased output. It would be extremely useful to planners to have a practical way of modelling the expected economic impacts. This paper describes the construction and implementation of a multiregional input-output (IO) model for policy simulation, based on a case study of Sri Lanka. The model is used to simulate impacts of alternative infrastructure investment policies that vary by region and industry. Only small differences in output are found at the national level, regardless of the location of investment. However, there are substantial differences in the impacts on regional output, with the rural investment scenarios creating the most regionally equitable outcomes. It appears that there is no serious conflict between regional equity and national efficiency as far as the location of new infrastructure investment is concerned. The modelling technique seems promising as a means to broaden the applied ana lysis of public investment programs.

ROBERT L. GUILD

Page Number - 315

COMPARATIVE INPUT-OUTPUT ANALYSIS OF THE INFORMATION INDUSTRIES OF SHANGHAI AND TOKYO

This paper attempts to analyze the industrial characteristics of the information industries by means of the input-output model. By comparing, we highlight the function of information industries in a developing metropolis such as Shanghai and a highly developed metropolis such as Tokyo, and point out the structural differences between them. The impact of the information industries on the socio-economy differs greatly between Shanghai and Tokyo.

GUOPING MAO, YOSHIRO HIGANO

Page Number - 333

THE ENVIRONMENT IN MACROECONOMIC ANALYSES - COMPARISONS BETWEEN SWEDEN AND THE UNITED STATES

Following the tradition of defining sustainable income as the difference between net national product and the allowance for the depreciation of environmental capital, a proxy is sought for the latter. By recourse to a Cobb-Douglas production function and some simplifying assumptions, the proxy is equated to energy consumption expenditure. The resulting income measure is tested for Sweden and the United States. The comparative analysis illustrates the scope for formulating policies that reconcile objectives that pertain to environmental sustainability income and employment. The policies considered are improvements in environmental capital efficiency, real wages, and environmental capital investments.

DODO J. THAMPAPILLAI, STIG WANDEN, MARKUS LARSSON, HANS-ERIK UHLIN

Page Number - 349