Australia′s Competitiveness

In this in–depth overview of Australia′s economy, Michael Enright and Richard Petty — leading scholars on international competition—look at the data behind the news reports to offer a complete view of Australia′s stable and wealthy economy. The book compares Australia with other similarly sized OECD economies as well as other Asia–Pacific economies and looks at fifteen international sources of data on competitiveness. It features a large–scale survey on Australian companies and offers deep insight on the country′s future in terms of economics and economic policy. Revealing an honest assessment of Australia′s true position in the world, the book looks at how Australian businesses see themselves and offers policy positions for government and firms to make the most of Australia′s unique global economic position. Backed by CPA Australia, one of the world′s largest accounting bodies Written by two global authorities on economic competitiveness Captures the thinking of more than 6,000 business leaders both within and outside of Australia Explains how Australia has weathered the global recession and looks at Australia′s relationship with China For business leaders and policy makers in need of an in–depth look at the current and future state of Australia′s economy, this book offers valuable and comprehensive information.

Foreword vii Introduction ix Acknowledgments xiii About the Authors xv CHAPTER 1 Australia’s Economic Performance 1 Aggregate Performance 1 Productivity 11 Global Trends 16 Looking Ahead 24 Notes 25 CHAPTER 2 International Assessments of Australia’s Competitiveness 27 Overall Competitiveness 28 Ease of Doing Business 32 Knowledge and Knowledge Economy 35 Economic Freedom 37 City Competitiveness 40 City Costs 42 Human Development and Quality of Living 42 Corruption and Corporate Governance 43 International Perspectives on Australia’s Competitiveness 46 Areas for Analysis and Action 49 Pushing the Envelope 50 Notes 51 CHAPTER 3 Competitiveness in the Real World 53 A Model of Competitiveness: The Five Level Competitiveness Framework™ 53 Surveying Competitiveness: The Importance–Performance Competitiveness Analysis™ Approach 56 Moving Ahead 84 Notes 84 CHAPTER 4 Drivers of Competitiveness in Australia 87 Firm and Industry Drivers 87 Meso or Cluster–Level Drivers 91 Macro or National–Level Drivers 98 Meta or Supranational–Level Drivers 107 Competitiveness Drivers in Perspective 110 Notes 115 CHAPTER 5 Workforce, Infrastructure, and Natural Resources 117 Workforce 118 Infrastructure 125 Natural Resources 132 Input Issues in Perspective 140 Notes 141 CHAPTER 6 Economic Policy, Regulation, and Tax 147 Economic Policy 148 Regulation 155 Tax and Tax Policy 160 Policy Areas in Perspective 167 Notes 168 CHAPTER 7 The Knowledge Economy, the Asia–Pacific Region, and the Role of Cities 173 Australia and the Knowledge–Innovation Economy 174 The Rise of the Asia–Pacific Region 183 Competitiveness and Australia’s Cities 198 The Knowledge Economy, Asia, and Cities in Perspective 206 Notes 207 CHAPTER 8 Scenarios for Australia’s Economic and Business Future 213 Key Trends 213 Trends in Competitiveness 215 Some Specific Scenarios for Australia’s Economic and Business Future 219 The Scenarios in Perspective 225 Notes 226 CHAPTER 9 Implications for Australia 227 Global Implications 227 Australian Implications 228 Australia and the Drivers of Competitiveness 231 Conclusions 260 Notes 263 Index 265