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Import Competition and Labour Productivity

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Author Info
Harry Bloch (Curtin University of Technology, Perth, Western Australia)
James Ted McDonald (University of Tasmania, Hobart, Tasmania)

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Abstract

The impact of import competition on labour productivity is examined using panel data for a sample of Australian manufacturing firms over the period 1984 to 1993. Import competition is found to interact with domestic competition; such the positive impact of import competition on the level and rate of growth of labour productivity rises with the degree of concentration among domestic producers. The results suggest that the movement towards lowering border protection on manufactured imports into Australia has led to enhanced productivity by domestic producers, especially those in highly concentrated industries.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2000n09.

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Length: 24 pages
Date of creation: May 2000
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Handle: RePEc:iae:iaewps:wp2000n09

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Julio J. Rotemberg & Michael Woodford, 1999. "The Cyclical Behavior of Prices and Costs," NBER Working Papers 6909, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-32, December. [Downloadable!] (restricted)
  3. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, Oxford University Press, vol. 6(2), pages 189-211, May.
  4. McDonald, James Ted, 1999. "The Determinants of Firm Profitability in Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 115-26, June.
  5. Gregory, R G & James, Denis W, 1973. "Do New Factories Embody Best Practice Technology?," Economic Journal, Royal Economic Society, vol. 83(332), pages 1133-55, December. [Downloadable!] (restricted)
  6. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer, vol. 15(2), pages 183-200, September. [Downloadable!] (restricted)
  7. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-47, October. [Downloadable!] (restricted)
  8. MacDonald, James M, 1994. "Does Import Competition Force Efficient Production?," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 721-27, November. [Downloadable!] (restricted)
  9. Caves, Richard E & Porter, Michael E, 1978. "Market Structure, Oligopoly, and Stability of Market Shares," Journal of Industrial Economics, Blackwell Publishing, vol. 26(4), pages 289-313, June. [Downloadable!] (restricted)
  10. Oulton, Nicholas, 1998. "Competition and the Dispersion of Labour Productivity amongst UK Companies," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 23-38, January.
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  11. Harry Bloch, . "Pricing in Australian Manufacturing," Working Papers ec6/92, Department of Economics, University of Lancaster.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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!]
  2. Jayanthakumaran, Kankesu & Neri, Frank, 2004. "Trade Reforms and Changes in Australian Manufactured Exports," Economics Working Papers wp04-09, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  3. Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers 2006-07, Bank of Estonia, revised 11 Dec 2006. [Downloadable!]
  4. Alfons Palangkaraya & Jongsay Yong, 2007. "Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments," Melbourne Institute Working Paper Series wp2007n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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  5. Mark Rogers, 2004. "Competition, agency and productivity," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 11(3), pages 349-367, November. [Downloadable!] (restricted)
    Other versions:
  6. Valadkhani, Abbas, 2005. "Which Industries Create More Employment? A Cross-Country Analysis," Economics Working Papers wp05-07, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  7. James Ted McDonald & Mita Bhattacharya & Harry Bloch, 2004. "Labour Productivity, Import Competition and Market Structure in Australian Manufacturing," Econometric Society 2004 Australasian Meetings 48, Econometric Society. [Downloadable!]
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