A cost function framework is used to model the productivity effect of trade openness in terms of cost saving. The idea of ?cost saving? is closer to the entrepreneur?s view of productivity. An entrepreneur would expect a reduction in the cost of production if trade openness brings any benefits...

Australian studies have focused on different dimensions of intra industry trade (IIT) between the manufacturing sector and the rest of the world at the disaggregated level, i.e. 1, 2, 3, 4 or 5 digit levels. The current study seeks to complement the existing literature by examining the IIT and...