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Trade Reforms and Manufacturing Performance: Australia 1989-97

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Abstract

Advocates of the competitive market paradigm strongly believe that "getting the price right" would improve manufacturing performance. Australia experienced extensive trade reforms in the late 1980s and 1990s which were expected to promote a competitive manufacturing sector. This paper examines whether these trade reforms have had a positive impact on the growth performance of the manufacturing sector. Selected growth performance variables - labour productivity, price-cost margins and exports - were regressed on change in protection variables. The results of the study are consistent with the hypothesis that trade reforms have increased the growth performance of the manufacturing sector.

Suggested Citation

  • Jayanthakumaran, K., 1999. "Trade Reforms and Manufacturing Performance: Australia 1989-97," Economics Working Papers WP99-13, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp99-13
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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012260.pdf
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    References listed on IDEAS

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    1. Havrylyshyn, Oli, 1990. "Trade Policy and Productivity Gains in Developing Countries: A Survey of the Literature," The World Bank Research Observer, World Bank, vol. 5(1), pages 1-24, January.
    2. Edward Oczkowski & Kishor Sharma, 2001. "Imperfect Competition, Returns To Scale and Productivity Growth In Australian Manufacturing: A Smooth Transition Approach To Trade Liberalisation," International Economic Journal, Taylor & Francis Journals, vol. 15(2), pages 99-113, June.
    3. 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.
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    Cited by:

    1. 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.

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