Research Discussion Paper – RDP 9310 Explaining the Recent Performance of Australia's Manufactured Exports

Contents

• Introduction
• Manufactured Exports: The Stylized Facts
• A Sunk Cost Model
• Evidence of Hysteresis
• Conclusion
• Appendix A: Model Assumptions
• Appendix B: Sample Survey Results
• Appendix C: Regression Results
• Appendix D: Data Sources and Definitions
• References

We are grateful to Adrian Blundell-Wignall for suggesting this topic. Jacqui Dwyer provided invaluable suggestions, as did Philip Lowe, Michele Bullock and David Gruen. The econometric analysis in this paper was aided by conversations with Alexandra Heath and Andy Tremayne. We also thank the survey respondents for taking the time to tell us about their firm's exports. Any errors are ours alone. The views expressed herein are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia.