TY - JOUR
T1 - Trade liberalization and productivity performance
T2 - Evidence from the Australian passenger motor vehicle industry
AU - Bopage, L
AU - Sharma, Kishor
PY - 2014/10
Y1 - 2014/10
N2 - This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.
AB - This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.
UR - http://www.scopus.com/inward/record.url?scp=84925628001&partnerID=8YFLogxK
U2 - 10.1515/gej-2014-0001
DO - 10.1515/gej-2014-0001
M3 - Article
VL - 14
SP - 467
EP - 485
JO - Global Economy Journal
JF - Global Economy Journal
SN - 1524-5861
IS - 3-4
ER -