Strategy, Scale or Policy? Exit in the Australian Car Industry | Zendy

Fleischmann Matthew P. | Zendy; Prentice David | Zendy

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Strategy, Scale or Policy? Exit in the Australian Car Industry

Author(s) -

Fleischmann Matthew P.,

Prentice David

Publication year - 2001

Publication title -

economic record

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.365

H-Index - 42

eISSN - 1475-4932

pISSN - 0013-0249

DOI - 10.1111/1475-4932.00028

Subject(s) - scale (ratio) , exit strategy , economics , economies of scale , industrial organization , econometrics , business , economic geography , microeconomics , geography , management , cartography

This paper estimates the importance of strategy, scale and policy in determining the pattern of exit in the Australian car industry. Previous studies found only a weak role for strategy in exit from declining industries. Using a new dataset and improvements on the specification used in earlier studies, we find evidence that strategy influences the pattern of exit where economies of scale are less important. Protection is also found to negatively influence the likelihood of exit.

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