The Cambridge Handbook of the Social Sciences in Australia

By Ian McAllister; Steve Dowrick et al. | Go to book overview

Chapter 10
International Trade and
Industry Policies
Kym Anderson

When the Australian federation formed in 1901, trade policy was a major point of difference between the colonies that were to become states within that federation. It turned out that the protectionists dominated the free traders, and before World War I Australia had adopted a firm protectionist stance. For seven decades thereafter, tariffs on imports of manufactures continued to rise. The average tariff level on non-food manufactures almost doubled in the decade to 1920, and doubled again by 1932. It dropped only a little in the latter 1930s, and then rose again after World War II. Protection was further increased in the 1940s and 1950s with the adoption of quantitative import restrictions, and there was a ban on exports of iron ore and coal. Unlike most other industrial countries, Australia did not take part in the multilateral tariff reductions negotiated under the General Agreement on Tariffs and Trade (GATT) during the 1950s and 1960s. Hence by 1970 Australia was rivalled only by New Zealand in having the highest manufacturing tariffs among the industrial countries (Anderson and Garnaut 1987).

Those seven decades of import-substituting industrialisation cost Australia dearly in terms of its comparative standard of living. In 1900, Australia was arguably the highestincome country in the world on a per capita basis. But by 1950 its rank had slipped to third; by 1970 it was eighth; and by the 1990s Australia was not even in the top twenty. 1

Australia's comparatively poor growth performance for most of the twentieth century contrasts with that of the final decade, when Australia outperformed all other advanced economies other than Ireland and Norway in terms of gross domestic product (GDP) per capita growth (World Bank 2000b: tables 1, 3, 11).This was a period of especially rapid productivity growth (Parham et al. 1999; Dowrick 2001), in contrast to Britain, where much of its catch-up has been due to growth in employment and hours worked per worker (Card and Freeman 2002).

The difference between the Australian economy's recent and earlier relative performance is due very substantially to the economic policy reforms of the past three decades. The belated opening of the Australian economy to the rest of the world, coupled with many domestic economic reforms, not only has arrested the decline in Australia's per capita income ranking, but also has had a remarkable influence on the pattern of Australia's production and trade.

-168-

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The Cambridge Handbook of the Social Sciences in Australia
Table of contents

Table of contents

  • Title Page *
  • Contents v
  • Figures and Tables vii
  • Contributors x
  • Preface and Acknowledgements xviii
  • Introduction 1
  • References 13
  • Part 1 - Economics 15
  • Chapter 1 - Privatisation 17
  • References 27
  • Chapter 2 - Competition Policy and Regulation 31
  • References 40
  • Chapter 3 - Economics and the Environment 45
  • References 57
  • Chapter 4 - Health Economics 60
  • References 70
  • Chapter 5 - Immigration 74
  • References 87
  • Chapter 6 - Labour Market and Industrial Relations 94
  • References 113
  • Chapter 7 - Income Distribution and Redistribution 118
  • References 134
  • Chapter 8 - Taxation 138
  • References 148
  • Chapter 9 - Innovation 153
  • References 165
  • Chapter 10 - International Trade and Industry Policies 168
  • References 180
  • Chapter 11 - The Macro Economy 186
  • Notes 199
  • References 200
  • Chapter 12 - Money and Banking 203
  • References 216
  • Part 2 - Political Science 221
  • Chapter 13 - Political Theory 223
  • References 231
  • Chapter 14 - Federalism and the Constitution 234
  • References 246
  • Chapter 15 - Legislative Institutions 249
  • References 260
  • Chapter 16 - Political Parties and Electoral Behaviour 266
  • References 283
  • Chapter 17 - Electoral Systems 287
  • References 302
  • Chapter 18 - Gender Politics 305
  • References 319
  • Chapter 19 - Interest Groups and Social Movements 323
  • References 339
  • Chapter 20 - Environmental Policy and Politics 345
  • References 355
  • Chapter 21 - International Relations 358
  • Notes 368
  • References 369
  • Chapter 22 - Political Economy 374
  • References 391
  • Chapter 23 - Public Policy and Public Administration 406
  • References 422
  • Part 3 - Sociology 431
  • Chapter 24 - Patterns of Social Inequality 433
  • References 457
  • Chapter 25 - Families and Households 462
  • References 477
  • Chapter 26 - Gender Perspectives 480
  • References 493
  • Chapter 27 - Work and Employment 499
  • Notes 511
  • References 512
  • Chapter 28 - Crime and Deviance 518
  • References 531
  • Chapter 29 - Health and Illness 536
  • References 552
  • Chapter 30 - Population 554
  • References 569
  • Chapter 31 - Race, Ethnicity and Immigration 573
  • Notes 585
  • References 586
  • Chapter 32 - Urban and Regional Sociology 590
  • Reference 598
  • Chapter 33 - Rural Sociology 604
  • Reference 619
  • Chapter 34 - Religion and Spirituality 626
  • Reference 632
  • Chapter 35 - Cultural Studies, Australian Studies and Cultural Sociology 638
  • References 651
  • Chapter 36 - Sociological Theory 654
  • References 664
  • Chapter 37 - Social Policy and Social Welfare 666
  • References 674
  • Author Index 678
  • Subject Index 696
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