Article ID Journal Published Year Pages File Type
5052641 Economic Analysis and Policy 2016 11 Pages PDF
Abstract
Using a simultaneous equations model, this paper aims to analyse the endogenous relationship among trade liberalisation, inward foreign direct investment and productivity within Australia's manufacturing sector. Using two-digit quarterly time-series data, from 1988 to 2012, we find empirical support for trade liberalisation as a mechanism for improving productivity within the domestic manufacturing sector. However, we find that inward foreign direct investment has not had a statistically significant impact on productivity within the sector. By drawing on these findings, among others, we make some recommendations for Australia's international trade, foreign investment and manufacturing industry policies.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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