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Trade Liberalization and Productivity Growth: Time-Series Evidence from Australian Manufacturing

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  • Chand, Satish

Abstract

This paper uses historical annual data for twenty-seven years from 1968-69 on eight two-digit ANZSIC industries to assess the impact of the changes in industry assistance on economic efficiency. The empirical analysis shows that a 1 percent decline in the nominal rate of assistance leads to between 0.18 and 0.56 percent gain in total factor productivity, the latter the author's measure of economic efficiency. This finding has strong policy implications for the future of tariff reform in the manufacturing sector. Copyright 1999 by The Economic Society of Australia.

Suggested Citation

  • Chand, Satish, 1999. "Trade Liberalization and Productivity Growth: Time-Series Evidence from Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(228), pages 28-36, March.
  • Handle: RePEc:bla:ecorec:v:75:y:1999:i:228:p:28-36
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    Cited by:

    1. Peter Dixon & Michael Jerie & Maureen Rimmer, 2016. "Modern Trade Theory for CGE Modelling: The Armington, Krugman and Melitz Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 1-110, June.
    2. 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.
    3. Renuka Mahadevan, 2002. "Trade liberalization and productivity growth in Australian manufacturing industries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(2), pages 170-185, June.
    4. Alfons Palangkaraya & Jongsay Yong, 2011. "Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments," The World Economy, Wiley Blackwell, vol. 34(1), pages 1-22, January.
    5. Tcha, MoonJoong & Kuriyama, Takashi, 2003. "Protection policy under economies of scale -- the welfare effects of tariffs on the Australian automotive industry," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 655-672, September.
    6. Thi Ngoc Thuyen Truong & Juthathip Jongwanich & Eric D. Ramstetter, 2015. "Productivity spillovers from foreign multinationals and trade protection: firm-level analysis of Vietnamese manufacturing," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(2), pages 30-46, November.
    7. Jurado, Gonzalo, 2004. "Growth Models, Development Planning, and Implementation in the Philippines," Philippine Journal of Development PJD 2003 Vol. XXX No. 1-a, Philippine Institute for Development Studies.
    8. Jayanthakumaran, K., 1999. "Trade Reforms and Manufacturing Performance: Australia 1989-97," Economics Working Papers WP99-13, School of Economics, University of Wollongong, NSW, Australia.
    9. Satish Chand, 2004. "Sweet land or Sweat land: Two proposals for facilitating access to land and adjustment to eroding EU sugar preferences in Fiji," International and Development Economics Working Papers idec04-6, International and Development Economics.
    10. 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.
    11. Bopage Lionel & Sharma Kishor, 2014. "Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 1-19, October.
    12. McKibbin, Warwick J. & Wilcoxen, Peter J., 2013. "A Global Approach to Energy and the Environment," Handbook of Computable General Equilibrium Modeling, Elsevier.
    13. Turnbull, Christopher & Sun, Sizhong & Anwar, Sajid, 2016. "Trade liberalisation, inward FDI and productivity within Australia’s manufacturing sector," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 41-51.
    14. International Monetary Fund, 2004. "Australia; Selected Issues," IMF Staff Country Reports 04/354, International Monetary Fund.
    15. Thuyen, Truong Thi Ngoc & Jongwanich, Juthathip & Ramstetter, Eric D., 2014. "Productivity spillovers from foreign multinationals and trade policy: firm-level analysis of Vietnamese manufacturing," AGI Working Paper Series 2014-10, Asian Growth Research Institute.
    16. Satya Paul & Andrew Marks, 2009. "Modelling Productivity Effects Of Trade Openness: A Dual Approach ," Australian Economic Papers, Wiley Blackwell, vol. 48(2), pages 105-123, June.
    17. 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.

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