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Strategy, Scale or Policy? Exit in the Australian Car Industry

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Author Info
Fleischmann, Matthew P
Prentice, David

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Abstract

This paper estimates the importance of strategy, scale and policy in determining the pattern of exit in the Australian car industry. Previous studies found only a weak role for strategy in exit from declining industries. Using a new dataset and improvements on the specification used in earlier studies, we find evidence that strategy influences the pattern of exit where economies of scale are less important. Protection is also found to negatively influence the likelihood of exit. Copyright 2001 by The Economic Society of Australia.

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Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 77 (2001)
Issue (Month): 239 (December)
Pages: 351-60
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Handle: RePEc:bla:ecorec:v:77:y:2001:i:239:p:351-60

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  1. Sanidas, Elias & Jayanthakumaran, Kankesu, 2003. "Trade Reforms and the Survival of the Passenger Motor Vehicle Industry in Australia," Economics Working Papers wp03-10, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  2. Sanidas, Elias & Jayanthakumaran, Kankesu, 2006. "The Consequences of Trade Liberalisation on the Australian Passenger Motor Vehicle Industry," Economics Working Papers wp06-01, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
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This page was last updated on 2009-11-28.

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