Trade Policy Reform and the textile, Clothing and Footwear Industry, Australia: 1993-97

Textiles, clothing and footwear (TCF) industries in Australia experienced extensive trade reforms in the 1990s, which were expected to promote a competitive TCF activities. This paper examines two hypotheses of one (1) trade reforms have had a positive impact on TCF industries and the other (2) trade reforms have had an adverse impact on Small and Medium Enterprises (SMEs). Selected growth performance variables were intensively analysed. The results of the study are consistent with the hypothesis (1) but are inconclusive with the hypothesis (2). It was found that the positive productivity effect of SMEs does not appear to have been translated into export gain. The needs for further research to identify and focus upon the barriers inhibiting the export performance of SMEs is suggested.