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      GLOBALISATION AND STRATEGIC TRADE POLICY: SOME IMPLICATIONS FOR THE AUSTRALIAN INFORMATION TECHNOLOGY INDUSTRY

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            Abstract

            It has been claimed that globalisation was the most exaggerated fad of the 1980s. Likewise, strategic trade policy has been described as the new protectionism. Yet Australian industry must compete in a world which is increasingly dominated by transnational corporations. Governments must frame policies for industrial development recognising that their counterparts overseas are implementing comprehensive global strategies. This article examines some of the implications for the Australian information technology industry of the spread of global industrial strategies and the emerging tendency of governments to intervene in strategic sectors of the economy.

            Content

            Author and article information

            Journal
            cpro20
            CPRO
            Prometheus
            Critical Studies in Innovation
            Pluto Journals
            0810-9028
            1470-1030
            June 1990
            : 8
            : 1
            : 35-49
            Affiliations
            Article
            8631872 Prometheus, Vol. 8, No. 1, 1990: pp. 35–49
            10.1080/08109029008631872
            16218c3d-81b6-41f3-8886-833d6e3c045a
            Copyright Taylor & Francis Group, LLC

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Page count
            Figures: 0, Tables: 0, References: 46, Pages: 15
            Categories
            Original Articles

            Computer science,Arts,Social & Behavioral Sciences,Law,History,Economics
            insiderisation,globalisation,agglomeration,information technology (IT),cumulative causation,transnational corporation (TNC),strategic trade policy

            NOTES AND REFERENCES

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            2. ibid, p. 18.

            3. ibid, p. 27.

            4. Ohmae K.. 1985. . Triad Power: The Coming Shape of Global Competition . , p. 201 New York : : Free Press. .

            5. Fagerberg J.. 1988. . International competitiveness. . Economic Journal . , Vol. 98((391)) June;: 355

            6. Krugman P. R.. 1986. . “Introduction: new thinking about trade policy. ”. In Strategic Trade Policy and the New International Economics . , Edited by: Krugman P. R.. p. 7 Cambridge , Massachusetts : : MIT Press. .

            7. ibid, p. 356.

            8. J. L. Whiteman, ‘The efficiency of labour and capital in Australian manufacturing’, Applied Economics, 20, 2, 1988, February, pp. 243–61.

            9. KMPG (Klynveld Peat Marwick Goerdeler), The Asia/Pacific Region: Economic and Business Prospects, KMPG Peat Marwick Hungerfords, Sydney, 1988, September, pp. 13–14.

            10. Schumpeter J.. 1943. . Capitalism, Socialism and Democracy . , p. 84 London : : Unwin. .

            11. Dorfman N. S.. 1987. . Innovation and Market Structure: Lessons from the Computer and Semiconductor Industries . , p. 37 Cambridge , Massachusetts : : Ballinger Publishing Company. .

            12. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1, Methuen, London, Fifth edition, 1930.

            13. Young A. A.. 1928. . Increasing returns and economic progress. . Economic Journal . , Vol. 38((152)) December;: 527––42. .

            14. Kaldor N.. 1966. . Causes of the Slow Rate of Economic Growth of the United Kingdom . , Cambridge , UK : : Cambridge University Press. .

            15. P. R. Krugman, ‘Rethinking international trade’, Business Economics, 1988, April, p. 7.

            16. Young, op. cit. and W.E.G. Salter, Productivity and Technical Change, University of Cambridge, Department of Applied Economics, Monographs, 1966.

            17. Young, op. cit., p. 533.

            18. Krugman, loc. cit.

            19. Krugman, 1986, op. cit., p. 8.

            20. See J. A. Cantwell, Technological Innovation and Multinational Corporations, Basil Blackwell, Oxford, 1988; J.H. Dunning and J.A. Cantwell, “The changing role of multinational enterprises in the international creation, transfer and diffusion of technology”, in F. Arcangeli, P.A. David and G. Dosi (eds), Technology Diffusion and Economic Growth: International and National Policy Perspectives, Oxford University, Press, Oxford, 1988.

            21. R. Dixon and A.P. Thirlwall, ‘A model of regional growth-rate differences on Kaldorian lines’, Oxford Economic Papers, 27, 2, 1975, July, pp. 201–14.

            22. J. A. Cantwell, ‘The reorganisation of European industries after integration: selected evidence on the role of multinational enterprise activities’, Journal of Common Market Studies, 26, 2, 1987, December, pp. 127–51.

            23. J. Henderson and A.J. Scott, ‘The growth and internationalisation of the American semiconductor industry: labour processes and the changing spatial organisation of production’, in M.J. Breheny and R.W. McQuaid, The Development of High Technology Industries: An International Survey, Croom Helm Ltd., Kent, 1987, p. 51.

            24. Whiteman J. L.. 1987. . Productivity and growth in Australian manufacturing industry. . Journal of Post Keynesian Economics . , Vol. 9((4)) Summer;: 582

            25. Cantwell, loc. cit.

            26. Dixon and Thirlwall op. cit., p. 203 introduce such a function pointing out that, “According to Kaldor, regional growth is fundamentally determined by the growth of demand for exports, to which the rate of growth of investment and consumption adjust.

            27. The explicit relationship was outlined by A.P. Thirlwall and R.J. Dixon, ‘A model of export-led growth with a balance of payments constraint’, in J.K Bowers (ed.), Inflation, Development and Integration: Essays in Honour of A.J. Brown, Leeds University Press, Leeds, 1979, pp. 173-92. The relationship was described by the above as ‘a fundamental law of growth’. It relates the equilibrium rate of growth of output to the rate of growth of exports divided by the income elasticity of demand for imports.

            28. Dixon and Thirlwall, loc. cit., p. 201.

            29. Henderson and Scott, op. cit., pp. 37–79.

            30. C. Hamilton, “Does free trade produce the goods?”, Economic Papers, 8, 2, 1989, June, pp. 23–36.

            31. Krugman, 1986, op. cit., p. 16.

            32. Australian Financial Review (AFR), 12 September, p. 15S.

            33. Krugman, 1986, op. cit., p. 8.

            34. Dorfman, op. cit. pp. 214–5.

            35. Fagerberg, op. cit., p. 371.

            36. Economist, June 4, 1988, p. 62.

            37. NIEIR, Deregulation of the Australian Telecommunications Industry: An economic assessment, A report prepared by the National Institute of Economic and Industry Research, Melbourne for the Department of Industry, Technology and Commerce, Canberra, 1988, March, p. 55.

            38. B. Dalum, J. Fagerberg and U. Jorgenson, ‘Small open economies in the world market for electronics: the case of the Nordic countries’, in C. Freeman and B-A Lundvall (eds), Small Countries Facing the Technological Revolution, Pinter Publishers, London, 1988, p. 133.

            39. Australian Financial Review, 26 September, 1988, p. 48.

            40. G. Carliner, ‘Industrial policies for emerging industries’, in P.R. Krugman (ed.), Strategic Trade Policy and the New International Economics, MIT Press, Cambridge, Massachusetts, 1986, p. 149.

            41. J. Stopford and L. Turner, Britain and the Multinationals, John Wiley and Sons, New York, 1985, p. 18.

            42. Bureau of Industry Economics, Studies in industrial development and innovation policy: I Introduction and general overview, Australian Government Publishing Service, Canberra 1987, p. ix.

            43. Salter, op. cit., p. 148.

            44. Krugman, 1986, op. cit., p. 17.

            45. See Computerworld Australia, 18 March, 1988, p. 3 and Australian Financial Review, June 6, 1988, p. 55.

            46. R. E. Caves, Multinational Enterprise and Economic Analysis, Cambridge University Press, Cambridge, 1982, p. 283.

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