Research Discussion Paper – RDP 9401 Resource Flows to the Traded Goods Sector


This paper examines the allocation of private investment and employment between the traded and non-traded goods sectors in Australia. Industries are defined as export oriented, import competing or non-traded according to a classification system not used in previous studies of tradeable capacity. Applying this new system to disaggregated investment and employment data we find that there has been an increase in the share of total investment allocated to export oriented industries, but that their share of total employment has not changed. The share of both investment and employment in import competing industries has, on the other hand, fallen. These changes in the sectoral allocation of resources are consistent with the specialisation in production that accompanies international integration.

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