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Import Competition and Labour Productivity

  • Harry Bloch

    (Curtin University of Technology, Perth, Western Australia)

  • James Ted McDonald

    (University of Tasmania, Hobart, Tasmania)

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
Date of revision:
Handle: RePEc:iae:iaewps:wp2000n09
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Web page: http://www.melbourneinstitute.com/
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  1. 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.
  2. 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.
  3. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
  4. Harry Bloch, . "Pricing in Australian Manufacturing," Working Papers ec6/92, Department of Economics, University of Lancaster.
  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.
  6. Keane, Michael P & Runkle, David E, 1992. "On the Estimation of Panel-Data Models with Serial Correlation When Instruments Are Not Strictly Exogenous," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(1), pages 1-9, January.
  7. James Tybout, 1999. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Development and Comp Systems 9906001, EconWPA, revised 10 Jun 1999.
  8. n/a, 2004. "Accounting for Background Variables in Stochastic Frontier Analysis," NIESR Discussion Papers 103, National Institute of Economic and Social Research.
  9. Richard E. Caves, 1992. "Industrial Efficiency in Six Nations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031930, June.
  10. Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers 524, Queen's University, Department of Economics.
  11. 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.
  12. Rotemberg, Julio J. & Woodford, Michael, 1999. "The cyclical behavior of prices and costs," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 16, pages 1051-1135 Elsevier.
  13. Caves, Richard E & Porter, Michael E, 1978. "Market Structure, Oligopoly, and Stability of Market Shares," Journal of Industrial Economics, Wiley Blackwell, vol. 26(4), pages 289-313, June.
  14. Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, vol. 36(1-2), pages 53-73, February.
  15. 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.
  16. Bloch, Harry & Olive, Michael, 1996. "Can Simple Rules Explain Pricing Behaviour in Australian Manufacturing?," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 1-19, June.
  17. 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.
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