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Australian Manufacturing Industry During the 1970s: An International Comparison and Implications for the ASEAN Countries
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1983 (English)Report (Other academic)
Abstract [en]

One of the arguments for trade is that is enables countries to specialise in production of goods in which they have comparative advantage, eg in the Heckscher-Ohlin-Samuelson model. Regarding consumption, trade allows countries to consumer more of (a larger number of) goods than it would have under autarky. In this paper we start off by looking into these very basic propositions with an emphasis on Australia's structural change in manufacturing production 1970-79 compared with other industrialized countries.

As a result of this investigation we extended the analysis to the demand side and the ASEAN countries. Thus in sections III:3 and IV:1 the link between home demand and domestic manufacturing production is analysed and compared between different developed and ASEAN countries. ASEAN coutnries' situation vis-a-vis Australia is focussed upon specifically in section IV not least with regard to textile, clothing and footwear. the paper ends with a summary in section V.

When investigating the validity of the Heckscher-Ohlin-Samuelson model's predictions for trade pattern, one limits oneself to commodities where labour and capital are principal factors of production. This avoids natural resource intensive commodities on the assumption that the location of that type of production is determined by countries' endowments of particular natural resources. Eg Krueger (1977) concludes on empirical testing "that a meaningful interpretation of the Heckscher-Ohlin-Samuelson model must lie within the manufacturing sector in a world of many countries. Once the focus is so shifted, it becomes immediately apparent that the Heckscher-Ohlin-Samuelson predictions are more likely to be borne out in patterns of specialization within manufacturing [production) than in comparisons of factors proportions in the exporting and import competing industries" (p. 43).

Place, publisher, year, edition, pages
Stockholm: IIES , 1983. , 53 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 255
National Category
URN: urn:nbn:se:su:diva-41493OAI: diva2:330681
Available from: 2010-07-20 Created: 2010-07-19 Last updated: 2010-07-20Bibliographically approved

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