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This paper examines the patterns and determinants of Australia's revealed comparative advantage in manufactured exports. The results show that Australia's greatest comparative advantage is in technology-intensive and skillintensive products. Export competitiveness appears to be positively influenced by the intensity of intra-industry trade, overseas investment, research-anddevelopment expenditure intensity and human-capital intensity. On the other hand, high protection has been a major deterrent to international competitiveness.

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This paper presents an empirical analysis of intra-industry trade (IIT) in Australia's foreign trade. It is found that with regard to the extent and the incidence of IIT across industries Australia is a clear outlier among the developed countries. The long-standing protectionist trade policy stance and high transport costs appear to exert significant negative influence on the extent of IIT. The degree of IIT seems to be positively influenced by overseas investment, product differentiation and close economic links New Zealand. In contrast to the findings for other developed countries, industry concentration and economies of scale do not appear to be significant explicators of ITT in Australia. [F14]

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