CALGARY, Alberta, Sept. 29, 2022 (GLOBE NEWSWIRE) -- If Canada followed Australia’s lead in several key policy areas, it could increase productivity growth and raise living standards, finds a new essay released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The similarities between Australia and Canada, economically and culturally, make it an important comparator country for Canadian policymakers,” said Stephen Kirchner, senior economist at the Business Council of Australia, senior fellow of the Fraser Institute and author of The Canadian-Australian Productivity Gap: Comparative Institutions and Policy Settings.
While most advanced economies recently experienced slower productivity growth (measured by comparing the amount of goods and services produced with the amount of inputs used to produce them), Canada has consistently lagged behind Australia in recent decades due largely to Australia’s higher level of investment. To help close this productivity gap, Canada could learn from the Australian experience and enact key policy reforms including:
cut red tape and remove impediments to stronger private investment spending (particularly in Canada’s non-housing sectors)
streamline regulation of the financial system, which would encourage more business lending
reduce and reform personal income taxes
“Because productivity growth drives living standards, policymakers should work to make Canada a more attractive place to invest and do business,” Kirchner said.
This is the third study in a three-part series of studies comparing the Canadian and Australian economies.
Stephen Kirchner, Senior Fellow, Fraser Institute
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org