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Trade Reforms and the Survival of the Passenger Motor Vehicle Industry in Australia

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Abstract

The Passenger Motor Vehicle (PMV) industry in Australia experienced extensive trade reforms in the late 1980s which were expected to promote a competitive PMV industry. This paper tests the hypotheses that decreasing protection have had a significant effect on production, imports, exports, labour productivity and organizational innovations (A1); and this effect is particularly evident since 1988 (A2). We have used cointegration analysis to test the hypothesis (A1) and the Chow test for (A2). Our study confirms our two hypotheses.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012151.pdf
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Bibliographic Info

Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp03-10.

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Length: 17 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:uow:depec1:wp03-10

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Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
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Keywords: passenger motor vehicle industry; trade reform; labour productivity; organizational innovations;

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  1. Sanidas, E., 2001. "The Successful Imitation of the Japanese Lean Production System by American Firms: Impact on American Economic Growth," Economics Working Papers wp01-02, School of Economics, University of Wollongong, NSW, Australia.
  2. Fleischmann, Matthew P & Prentice, David, 2001. "Strategy, Scale or Policy? Exit in the Australian Car Industry," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 351-60, December.
  3. Ross Garnaut, 1997. "Australian Cars in a Global Economy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(4), pages 359-373.
  4. Feenstra, Robert C., 1985. "Automobile prices and protection: The U.S.-Japan trade restraint," Journal of Policy Modeling, Elsevier, vol. 7(1), pages 49-68.
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