Explaining the Timing of Australia's Manufactured Export Boom
Australian Economic Review, 1994, vol. 27, issue 4, 72-86
Abstract This article seeks to explain some of the recent growth in Australia's manufactured exports using a sunk cost model. It is shown that a shock to the economy can cause a sudden and permanent increase in exports. Results from a sample survey suggest that the increased export orientation of Australia's manufacturing sector may persist, even if the recent economic shocks faced by exporters are reversed.
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