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Explaining the Timing of Australia's Manufactured Export Boom

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  • Gordon Menzies

Abstract

This article seeks to explain some of the recent growth in Australia's manufactured exports using a sunk cost model. It is shown that a shock to the economy can cause a sudden and permanent increase in exports. Results from a sample survey suggest that the increased export orientation of Australia's manufacturing sector may persist, even if the recent economic shocks faced by exporters are reversed.

Suggested Citation

  • Gordon Menzies, 1994. "Explaining the Timing of Australia's Manufactured Export Boom," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(4), pages 72-86, October.
    • Handle: RePEc:bla:ausecr:v:27:y:1994:i:4:p:72-86
    DOI: 10.1111/j.1467-8462.1994.tb00861.x
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    References listed on IDEAS

    as
    1. Gordon Menzies, 1994. "A Comment On Recent Surveys Of Australian Exporters," Economic Papers, The Economic Society of Australia, vol. 13(1), pages 122-124, March.
    2. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    3. Gordon Menzies & Geoffrey Heenan, 1993. "Explaining the Recent Performance of Australia’s Manufactured Exports," RBA Research Discussion Papers rdp9310, Reserve Bank of Australia.
    4. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    5. Jacqueline Dwyer & Christopher Kent & Andrew Pease, 1993. "Exchange Rate Pass-through: The Different Responses of Importers and Exporters," RBA Research Discussion Papers rdp9304, Reserve Bank of Australia.
    6. Morris Goldstein & Mohsin S. Khan, 2017. "The Supply and Demand for Exports: A Simultaneous Approach," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 2, pages 83-104, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Nikola Dvornak & Marion Kohler & Gordon Menzies, 2005. "Australia's Medium‐Run Exchange Rate: A Macroeconomic Balance Approach," The Economic Record, The Economic Society of Australia, vol. 81(253), pages 101-112, June.
    2. Andrew Marks & Mehdi Sadeghi, 1998. "Testing the Olson Hypothesis within the Australian Context," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(2), pages 130-144, June.

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