CALGARY, Alberta, Sept. 29, 2022 (GLOBE NEWSWIRE) — If Canada followed Australia’s example in several key policy areas, it could boost productivity growth and improve living standards, finds a new essay published today by the Fraser Institute, an independent , Canadian nonpartisan public policy think tank.
“The economic and cultural similarities between Australia and Canada make it an important comparison country for Canadian policymakers,” said Stephen Kirchner, senior economist at the Business Council of Australia, senior fellow at the Fraser Institute and author of The Canada-Australia Productivity Gap: Comparative Institutions and Policy Attitudes.
While most advanced economies have recently experienced slower productivity growth (as measured by comparing the amount of goods and services produced versus the amount of inputs used to produce them), Canada has consistently lagged behind Australia in recent decades, largely due to the higher investments by Australia. To close this productivity gap, Canada could learn from Australia’s experience and undertake important policy reforms, including:
- Reducing bureaucracy and removing barriers to greater private investment spending (particularly in Canada’s non-residential sectors)
- Tightening of the regulation of the financial system, which would lead to more lending to companies
- Lower and reform income taxes
“As 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 comparing the Canadian and Australian economies.
MEDIA CONTACT:
Stephen Kirchner, Senior Fellow, Fraser Institute
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