Estimates of the Long-Run Growth Rate of Australia


Correspondence: Sriram Shankar, School of Economics and Finance, University of Western Sydney, Sydney, Australia. Email:


This short note estimates using the Kmenta's (1967) approximation, a constant elasticity of substitution (CES) production function for Australia for 1960–2004. It is found that the elasticity of substitution is 2.44, technical progress is capital augmenting and the steady-state growth rate (SSGR) of Australia is about 0.34%.