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Australian manufacturing trade has witnessed a significant structural change in the past two decades. One of the noticeable developments has occurred in the area of parts and components (PCs) trade—a phenomenon that has been observed globally. Our analysis suggests that exports of PCs from Australia has fallen marginally while their imports in total manufacturing trade remains very high. A fall in the share of PCs exports is not surprising given the migration of PCs producing firms from Australia to low-cost production locations in Asia. We observe a dramatic increase in the shares of Asian countries in PCs imports to Australia while a falling share of NAFTA and EU countries. Econometric results based on panel data suggest that market size, the distance between trading partners, proximity to Asia and common language are important determinants in explaining a surge in PCs trade in Australian manufacturing. [ABSTRACT FROM AUTHOR]

Whilst there is a consensus among economists that export-oriented development strategy is superior to inward-oriented strategy, doubts whether export-orientation can solve the problems of developing countries remain very strong. The purpose of this paper is to contribute to this debate using the experience of Mongolia--the country, which was little known to the rest of the world until the early 1990s. Results suggest a significant rise in export intensity following the adoption of export-oriented strategy. There is strong statistical evidence to suggest that foreign investment and lower unit labor cost have positively contributed to export expansion in Mongolian manufacturing. Our findings also indicate that industry protection and the state ownership retard export performance suggesting further liberalization in trade and investment policy, and privatization of stateowned enterprises to improve export competitiveness. [ABSTRACT FROM AUTHOR]