Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments

Alfons Palangkaraya and Jongsay Yong

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: Using Australian manufacturing establishment data from 1993-94 and 1996-97, we study three possible sources of productivity gains from trade liberalisation: the exit of inefficient establishments, economies of scale from output expansion, and reduction in employment. We find weak evidence that establishments in industries with greater reductions in effective rate of assistance are more likely to exit, strong evidence that they reduce employment, and no evidence for economies of scale through output expansion. Thus the productivity gains appear to come more from the pro-competitive effects which forces establishments to reduce their slackness rather than from the exit of less efficient establishments.

Keywords: Productivity; Trade Liberalisation; Australia; Manufacturing; Establishment; Exit; Employment (search for similar items in EconPapers)
JEL-codes: D21 F21 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-06
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://degit.sam.sdu.dk/papers/degit_12/C012_026.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to degit.sam.sdu.dk:80 (No such host is known. )

Related works:
Journal Article: Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments (2011)
Working Paper: Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c012_026

Access Statistics for this paper

More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Bibliographic data for series maintained by Jan Pedersen ().