Import Competition and Labour Productivity

Harry Bloch () and James Ted McDonald
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James Ted McDonald: University of Tasmania, Hobart, Tasmania

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: The impact of import competition on labour productivity is examined using panel data for a sample of Australian manufacturing firms over the period 1984 to 1993. Import competition is found to interact with domestic competition; such the positive impact of import competition on the level and rate of growth of labour productivity rises with the degree of concentration among domestic producers. The results suggest that the movement towards lowering border protection on manufactured imports into Australia has led to enhanced productivity by domestic producers, especially those in highly concentrated industries.

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Date: 2000-05
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