Strategy, Scale or Policy? Exit in the Australian Car Industry
This paper estimates the importance of strategy, scale and policy in determining the pattern of exit in the Australian car industry. Previous studies found only a weak role for strategy in exit from declining industries. Using a new dataset and improvements on the specification used in earlier studies, we find stronger evidence that strategy influences the pattern of exit where economies of scale are less important. Protection is also found to negatively influence the likelihood of exit.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.latrobe.edu.au/economics|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
- Pankaj Ghemawat & Barry Nalebuff, 1990. "The Devolution of Declining Industries," The Quarterly Journal of Economics, Oxford University Press, vol. 105(1), pages 167-186.
- Peter Stubbs, 1972. "The Australian Motor Industry A Study in Protection and Growth," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 5(1), pages 46-46.
- Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 53-82.
- Baden-Fuller, Charles W F, 1989. "Exit from Declining Industries and the Case of Steel Castings," Economic Journal, Royal Economic Society, vol. 99(398), pages 949-61, December.
- Deily, Mary E, 1988. "Investment Activity and the Exit Decision," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 595-602, November.
- Robert Conlon & John Perkins, 1997. "Political Economy Of Assistance To The Automotive Industry In Australia: Have We Seen It All Before?," Economic Papers, The Economic Society of Australia, vol. 16(2), pages 76-91, 06.
- Gibson,J.K. & Harris,R.I.D., 1996.
"Trade Liberalisation and Plant Exit in New Zealand Manufacturing,"
66, Portsmouth University - Department of Economics.
- Gibson, John K & Harris, Richard I D, 1996. "Trade Liberalisation and Plant Exit in New Zealand Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 521-29, August.
- 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, 09.
- Dierickx, I. & Matutes, C. & Neven, D., 1991. "Cost differences and survival in declining industries : A case for 'picking winners'?," European Economic Review, Elsevier, vol. 35(8), pages 1507-1528, December.
- Mary E. Deily, 1991. "Exit Strategies and Plant-Closing Decisions: The Case of Steel," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 250-263, Summer.
- John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
When requesting a correction, please mention this item's handle: RePEc:ltr:wpaper:2000.14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Scoglio)
If references are entirely missing, you can add them using this form.