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Strategy, Scale or Policy? Exit in the Australian Car Industry

Author

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  • Matthew P Fleischmann

    (Ratio Consultants)

  • David Prentice

    (Department of Economics and Finance, La Trobe University)

Abstract

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.

Suggested Citation

  • Matthew P Fleischmann & David Prentice, 2000. "Strategy, Scale or Policy? Exit in the Australian Car Industry," Working Papers 2000.14, School of Economics, La Trobe University.
    • Handle: RePEc:ltr:wpaper:2000.14
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    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0019/130870/2000.14.pdf
    File Function: First version, 2000.14.pdf
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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.
    2. 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.
    3. 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.

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