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The Impact of International Trade and Protection on Australian Manufacturing Employment

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  • Noel Gaston

Abstract

The labour market consequences of trade and protection have only recently come under the scrutiny of labour economists. This paper seeks to accomplish two things ‐ to survey the recent research and to provide estimates of the effect that reductions in effective rates of assistance afforded to Australia's manufacturing industries have had on employment. Recent labour market developments reveal a downward trend in manufacturing employment levels. The declines appear to have been associated with lower levels of assistance. However, the estimates of the effect of lower levels of protection are generally small ‐ about a one per cent reduction in employment for each ten per cent reduction in the effective rate of industry assistance. In addition, the manufacturing employment developments appear to be only weakly linked to real wage resistance. Overall, an overriding impression from the find ings presented in this paper is the strength of the structural adjustments ongoing in Australia

Suggested Citation

  • Noel Gaston, 1998. "The Impact of International Trade and Protection on Australian Manufacturing Employment," Australian Economic Papers, Wiley Blackwell, vol. 37(2), pages 119-136, June.
    • Handle: RePEc:bla:ausecp:v:37:y:1998:i:2:p:119-136
    DOI: 10.1111/1467-8454.00010
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    Cited by:

    1. Alan Morris & Shaun Wilson, 2014. "Struggling on the Newstart unemployment benefit in Australia: The experience of a neoliberal form of employment assistance," The Economic and Labour Relations Review, , vol. 25(2), pages 202-221, June.
    2. Michael Coelli & James Maccarrone & Jeff Borland, 2023. "The dragon Down Under: the regional labour market impact of growth in Chinese imports to Australia," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2148-2163, November.
    3. Andrew Marks, 2009. "Intra‐Industry Trade and Adjustment Costs in the Australian Textile, Clothing and Footwear and Motor Vehicle Industries: A Comparative Case Study Approach," Economic Papers, The Economic Society of Australia, vol. 28(4), pages 323-336, December.
    4. Craig de Laine & Patrick Laplagne & Susan Stone, 2001. "The increasing demand for skilled workers in Australia: the role of technical change," Labor and Demography 0105005, University Library of Munich, Germany.
    5. 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.
    6. Aaron Blanco & Jeff Borland & Michael Coelli & James Maccarrone, 2021. "The Impact of Growth in Manufactured Imports from China on Employment in Australia," The Economic Record, The Economic Society of Australia, vol. 97(317), pages 243-266, June.
    7. Jayanthakumaran, Kankesu, 2004. "An Empirical Assessment of the Impact of Intra-Industry Trade on Employment: Australia 1989/90-2000/01," Economics Working Papers wp04-11, School of Economics, University of Wollongong, NSW, Australia.
    8. Gaston, N., 2000. "Unions and the Decentralisation of Collective Bargaining in a Globalising World," ISER Discussion Paper 0495, Institute of Social and Economic Research, Osaka University.
    9. Jeff Borland, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(2), pages 177-202, June.
    10. Chun‐Chieh Huang & Juin‐Jen Chang & Hsiao‐Wen Hung, 2020. "Progressive Tax and Inequality in a Unionized Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(1), pages 38-80, January.
    11. Lei Ji & Juin‐Jen Chang & Chien‐Yu Huang, 2016. "Unionization, market structure, and economic growth," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 935-951, January.
    12. Peter Drysdale & Roger Farrell, 1999. "Perspectives on Japanese Investment, Employment and Management in Australia," Asia Pacific Economic Papers 290, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.

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