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Beyond Brigden: Australia’s pre-war manufacturing tariffs, real wages and economic size

Tyers, Rod; Colman, William

Description

Like many industrialised economies in the pre-depression era, Australia elected to maintain a highly protectionist trade policy regime and hence to retard its integration with the global economy. The rationale for Australia’s protectionism was, as elsewhere, the enhancement of worker welfare. The Brigden Report offered a pre-Stolper-Samuelson recognition that protection of labour intensive industries would bolster Australia’s real wage, though the Report did not highlight the further...[Show more]

dc.contributor.authorTyers, Rod
dc.contributor.authorColman, William
dc.date.accessioned2005-08-08
dc.date.accessioned2006-03-27T02:08:02Z
dc.date.accessioned2011-01-05T08:32:56Z
dc.date.available2006-03-27T02:08:02Z
dc.date.available2011-01-05T08:32:56Z
dc.date.created2005
dc.identifier.urihttp://hdl.handle.net/1885/43029
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/43029
dc.description.abstractLike many industrialised economies in the pre-depression era, Australia elected to maintain a highly protectionist trade policy regime and hence to retard its integration with the global economy. The rationale for Australia’s protectionism was, as elsewhere, the enhancement of worker welfare. The Brigden Report offered a pre-Stolper-Samuelson recognition that protection of labour intensive industries would bolster Australia’s real wage, though the Report did not highlight the further consequence that this would attract European migrants. Brigden’s wage effect mirrors the subsequent Stolper-Samuelson Theorem and Heckscher-Ohlin-Samuelson (HOS) model yet it has still more advanced elements. We illustrate it using the strict two-sector HOS model and a more modern version with differentiated products, three sectors, including a non-traded services sector, natural resources as a specific factor and foreign ownership of domestic capital. While ever production remains diversified, the HOS model with elastic migration does not support a unique link between a single region’s protection and its labour endowment. The more modern model does yield this link, however, suggesting that protection might indeed have fostered, at least temporarily, immigration, capital inflow and overall economic expansion in Australia.
dc.format.extent321961 bytes
dc.format.extent350 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/octet-stream
dc.language.isoen_AU
dc.subjectliving standard
dc.subjectBrigden Report
dc.subjectAustralia
dc.subjectworker welfare
dc.subjecttariff
dc.subjectFirst World War
dc.subjectmigrant labour
dc.titleBeyond Brigden: Australia’s pre-war manufacturing tariffs, real wages and economic size
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationmonthjun
local.identifier.citationyear2005
local.identifier.eprintid3180
local.rights.ispublishedyes
dc.date.issued2005
local.contributor.affiliationFaculty of Economics and Commerce
local.contributor.affiliationANU
local.citationseries in Economics and Econometrics no.456
CollectionsANU Research Publications

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