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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.

Suggested Citation

  • 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.
    • Handle: RePEc:uow:depec1:wp03-10
    as

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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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    References listed on IDEAS

    as
    1. Scott, Robert E., 1994. "The effects of protection on a domestic oligopoly: The case of the U.S. auto market," Journal of Policy Modeling, Elsevier, vol. 16(3), pages 299-325, June.
    2. 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, December.
    3. 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 351-360, December.
    4. Matthew P. Fleischmann & David Prentice, 2001. "Strategy, Scale or Policy? Exit in the Australian Car Industry," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 351-360, December.
    5. 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.
    6. 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.
    7. R.M. Conlon & J.A. Perkins, 1995. "Automotive Industry Policy In Australia: Origins, Impact And Prospects," Economic Papers, The Economic Society of Australia, vol. 14(3), pages 49-68, September.
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    Cited by:

    1. Lionel Bopage & Kishor Sharma, 2014. "Liberalization and Structural Change in Australian Automotive Industry: An Analysis of Trade and Productivity Performance: 1962–2008," Global Business Review, International Management Institute, vol. 15(3), pages 447-460, September.

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    More about this item

    Keywords

    passenger motor vehicle industry; trade reform; labour productivity; organizational innovations;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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