Melbourne Institute Working Paper Series Database (1984 - 2010)

Melbourne Institute Working Paper No. 09/2000

Import Competition and Labour Productivity

by

Harry Bloch and James Ted McDonald

Date: May 2000

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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