The Australian Government is now operating in line with Caretaker Conventions, pending the outcome of the 2025 federal election.
This staff research paper investigates the nature of the relationship between import competition and manufacturing sector employment within Australia.
Manufacturing employment in Australia has been on a long-run declining trend over the past four decades. It is a widely held view that import competition, especially from low wage countries, is an important factor driving this trend.
The research finds that low-wage countries have significantly increased their collective share of Australia’s imports of manufactured goods.
The results also indicate:
- manufactured imports have a statistically significant negative relationship with manufacturing employment
- exports have the opposite effect
- trade's role in employment determination has waned over time
Author: Razib Tuhin