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Explaining the Timing of Australia's Manufactured Export Boom
Author(s) -
Menzies Gordon
Publication year - 1994
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1994.tb00861.x
Subject(s) - boom , shock (circulatory) , sunk costs , manufacturing sector , sample (material) , economics , large sample , international economics , business , engineering , microeconomics , medicine , chemistry , chromatography , environmental engineering , statistics , mathematics
This article seeks to explain some of the recent growth in Australia's manufactured exports using a sunk cost model. It is shown that a shock to the economy can cause a sudden and permanent increase in exports. Results from a sample survey suggest that the increased export orientation of Australia's manufacturing sector may persist, even if the recent economic shocks faced by exporters are reversed .