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Trade Liberalization and Productivity Growth: Time‐Series Evidence from Australian Manufacturing

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  • SATISH CHAND

Abstract

This paper uses historical annual data for 27 years from 1968‐69 on eight two‐digit ANZSIC industries to assess the impact of the changes in industry assistance on economic efficiency. The empirical analysis shows that a 1 per cent decline in the nominal rate of assistance leads to between O.J 8 and 056 per cent gain in total factor productivity, the latter our measure of economic efficiency. This finding has strong policy implications for the future of tariff reform in the manufacturing sector.

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  • Satish Chand, 1999. "Trade Liberalization and Productivity Growth: Time‐Series Evidence from Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 28-36, March.
    • Handle: RePEc:bla:ecorec:v:75:y:1999:i:1:p:28-36
    DOI: 10.1111/j.1475-4932.1999.tb02431.x
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    Cited by:

    1. Satya Paul, 2003. "Effects of Public Infrastructure on Cost Structure and Productivity in the Private Sector," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 446-461, December.
    2. International Monetary Fund, 2004. "Australia: Selected Issues," IMF Staff Country Reports 2004/354, International Monetary Fund.
    3. Peter B. Dixon & Maureen T. Rimmer, 2010. "Optimal Tariffs: Should Australia Cut Automotive Tariffs Unilaterally?," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 143-161, June.
    4. 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.
    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. Tcha, MoonJoong & Kuriyama, Takashi, 2003. "Protection policy under economies of scale -- the welfare effects of tariffs on the Australian automotive industry," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 655-672, September.
    7. Thi Ngoc Thuyen Truong & Juthathip Jongwanich & Eric D. Ramstetter, 2015. "Productivity spillovers from foreign multinationals and trade protection: firm-level analysis of Vietnamese manufacturing," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(2), pages 30-46, November.
    8. McKibbin, Warwick J. & Wilcoxen, Peter J., 2013. "A Global Approach to Energy and the Environment," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 995-1068, Elsevier.
    9. Turnbull, Christopher & Sun, Sizhong & Anwar, Sajid, 2016. "Trade liberalisation, inward FDI and productivity within Australia’s manufacturing sector," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 41-51.
    10. Thuyen, Truong Thi Ngoc & Jongwanich, Juthathip & Ramstetter, Eric D., 2014. "Productivity spillovers from foreign multinationals and trade policy: firm-level analysis of Vietnamese manufacturing," AGI Working Paper Series 2014-10, Asian Growth Research Institute.
    11. Blanc, Elodie & Monier, Erwan & Fant, Charles & Reilly, John, 2014. "Climate Change, Water Resources and Irrigated Crop Yields: A Modeling Framework for Integrated Assessment of the US," Conference papers 332547, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. R. Mahadevan, 2002. "Productivity growth in Australian manufacturing sector: some new evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 1017-1023.

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