It helps too for those markets to be supported by a robust institutional framework, such as: the rule of law; effective regulation and oversight of parts of the economy, including to ensure the soundness of the financial system; and institutions to oversee the efficient provision of public services and infrastructure, and encourage prudent management of fiscal and monetary affairs.
Productivity growth was especially strong across many countries, including Australia, over the decade starting in the mid 1990s (Graph 1). There may have been some common sources to this strong growth. An obvious candidate is technological progress.5 In the case of Australia, and a number of other countries, a range of earlier economic reforms may also have played a role.