IDEAS home Printed from https://ideas.repec.org/a/taf/intecj/v15y2001i2p99-113.html
   My bibliography  Save this article

Imperfect Competition, Returns To Scale and Productivity Growth In Australian Manufacturing: A Smooth Transition Approach To Trade Liberalisation

Author

Listed:
  • Edward Oczkowski
  • Kishor Sharma

Abstract

This Paper examines the relationship between trade liberalization and productivity growth for Australian manufacturing. An imperfect competition, non-CRS, smooth transition empirical framework is employed for analysis. GMM estimates of the logistic smooth transition model imply that trade reform impacts take approximately four years to complete, but do not occur over the same time period for all industries. In response to trade reforms, for most industries a significant improvement in productivity is estimated, these improvements are associated with lower mark-ups and falling scale parameters. A minority of industries however, experienced no change or falling productivity growth in response to reforms, these industries tended to have the highest absolute protection levels. [D24, F12, C52, L60]

Suggested Citation

  • 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.
    • Handle: RePEc:taf:intecj:v:15:y:2001:i:2:p:99-113
    DOI: 10.1080/10168730100000039
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10168730100000039
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10168730100000039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Howard Pack, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter.
    2. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    3. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
    4. Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, vol. 36(1-2), pages 53-73, February.
    5. Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
    6. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    7. Jun, Sangjoon, 1998. "Procyclical Multifactor Productivity: Tests of the Current Theories," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(1), pages 51-63, February.
    8. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.
    2. Jayanthakumaran, Kankesu & Neri, Frank, 2004. "Trade Reforms and Changes in Australian Manufactured Exports," Economics Working Papers wp04-09, School of Economics, University of Wollongong, NSW, Australia.
    3. Geng, Nan, 2011. "The dynamics of market structure and firm-level adjustment to India's pro-market economic liberalizing reforms, 1988-2006: A Time Varying Panel Smooth Transition Regression (TV-PSTR) approach," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 506-519, October.
    4. Jayanthakumaran, K., 1999. "Trade Reforms and Manufacturing Performance: Australia 1989-97," Economics Working Papers WP99-13, School of Economics, University of Wollongong, NSW, Australia.
    5. Bopage Lionel & Sharma Kishor, 2014. "Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 467-485, October.
    6. Dean Parham, 2004. "Sources of Australia's Productivity Revival," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 239-257, June.
    7. 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.
    8. Patricia Augier & Michael Gasiorek & Gonzalo Varela, 2007. "Determinants of Productivity in Morocco - The Role of Trade?," CARIS Working Papers 02, Centre for the Analysis of Regional Integration at Sussex, University of Sussex.
    9. Harry Bloch, 2010. "Technological Change in Australian Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(1), pages 28-38, March.
    10. Valadkhani, Abbas, 2005. "Which Industries Create More Employment? A Cross-Country Analysis," Economics Working Papers wp05-07, School of Economics, University of Wollongong, NSW, Australia.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Geng, Nan, 2011. "The dynamics of market structure and firm-level adjustment to India's pro-market economic liberalizing reforms, 1988-2006: A Time Varying Panel Smooth Transition Regression (TV-PSTR) approach," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 506-519, October.
    2. Yapa M.W.Y. Bandara & Neil D. Karunaratne, 2013. "Globalization, Policy Reforms and Productivity Growth in Developing Countries: Evidence from Sri Lanka," Global Business Review, International Management Institute, vol. 14(3), pages 429-451, September.
    3. Juan Pineiro Chousa & Haider A. Khan & Davit N. Melikyan & Artur Tamazian, 2006. "Democracy, Finance and Development," CARF F-Series CARF-F-088, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    4. Piñeiro, J. & Khan, H.A. & Melikyan, D.N. & Tamazian, A., 2005. "Financial Market Efficiency, Institutions and Growth: An international Econometric Analysis for 1997-2002," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).
    5. Juan Pineiro Chousa & Haider Ali Khan & Davit N. Melikyan & Artur Tamazian, 2005. "Institutional and Financial Determinants of Development: New Evidence from Advanced and Emerging Markets," CIRJE F-Series CIRJE-F-326, CIRJE, Faculty of Economics, University of Tokyo.
    6. Deb Kusum Das, 2003. "Manufacturing productivity under varying trade regmies: India in the 1980s and 1990s," Indian Council for Research on International Economic Relations, New Delhi Working Papers 107, Indian Council for Research on International Economic Relations, New Delhi, India.
    7. Păun Cristian, 2009. "An empirical estimation of Balassa-Samuelson Effect in case of Eastern European Countries," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 01, March.
    8. Ben Fine, 1998. "Endogenous Growth Theory: A Critical Assessment," Working Papers 80, Department of Economics, SOAS University of London, UK.
    9. Paolo Epifani, 2003. "Trade liberalization, Firm Performances and Labor Market Outcomes in the Developing World, what Can We Learn From Micro-Level Data?," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 455-486.
    10. Ahmed, Gulzar & Arshad Khan, Muhammad & Afzal, Muhammad, 2015. "Trade Liberalization and Industrial Productivity: Evidence from Pakistan," MPRA Paper 70744, University Library of Munich, Germany, revised 15 Mar 2016.
    11. repec:lic:licosd:13303 is not listed on IDEAS
    12. Brian Chi‐ang Lin, 2007. "A New Vision Of The Knowledge Economy," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 553-584, July.
    13. Juan Pineiro Chousa & Haider Ali Khan & Davit N. Melikyan & Artur Tamazian, 2005. "Institutional and Financial Determinants of Development: New Evidence from Advanced and Emerging Markets," CARF F-Series CARF-F-027, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    14. Bernat Jr., G. Andrew, 1999. "Economic Growth Theory, Clustering, and the Rise of the South," The Review of Regional Studies, Southern Regional Science Association, vol. 29(1), pages 1-12, Summer.
    15. Georg Erber, 1994. "Technical Change, Economies of Scale, and Factor Augmentation: Impacts on Relative Differences in Productivity and Price Competitiveness between U.S. and German Industries," Discussion Papers of DIW Berlin 93, DIW Berlin, German Institute for Economic Research.
    16. Shu-Hua Chen, 2015. "Fiscal and Monetary Policies in a Transactions-Based Endogenous Growth Model with Imperfect Competition," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 89-111, March.
    17. Leonard K. Cheng, 1995. "Strategies For Rapid Economic Development: The Case Of Hong Kong," Contemporary Economic Policy, Western Economic Association International, vol. 13(1), pages 28-37, January.
    18. Azomahou, Théophile T. & Diene, Mbaye, 2012. "Polarization patterns in economic development and innovation," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 421-436.
    19. Ruttan, Vernon W., 1998. "Growth Economics And Development Economics: What Should Development Economists Learn (If Anything) From The New Growth Theory?," Bulletins 12972, University of Minnesota, Economic Development Center.
    20. Florian Straßberger, 1995. "Technischer Wandel und wirtschaftliches Wachstum: Einige jüngere Entwicklungen, empirische Ergebnisse und wirtschaftliche Konsequenzen," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 64(2), pages 200-220.
    21. Daniele Schilirò, 2019. "The Growth Conundrum: Paul Romer’s Endogenous Growth," International Business Research, Canadian Center of Science and Education, vol. 12(10), pages 75-85, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:15:y:2001:i:2:p:99-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RIEJ20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.