Trade liberalization and international performance of Australian manufacturing industries and ITs

Trade liberalization has played a pivotal role in improving the export orientation of the various Australian manufacturing industries (at the two-digit level) in the period 1974/75-2000/01. However, those industries subjected to industry-specific assistance measures - for example, the textile, clothing and footwear and the machinery and equipment industries (motor vehicle industry component) - have exhibited a superior export-oriented performance. The important lesson emanating from this result for the information technology sector is that although it is also subjected to these measures, their expansion can help alleviate the weak and stagnant export performance in information technology goods thereby helping to combat the projected large balance of trade deficit. Moreover, stronger output and employment growth will arise because of the significant contribution of these goods to the economy.