An estimated Trade Restrictiveness Index of the level of protection in Australian manufacturing

In this paper we provide a new 31-year time series of the level of protection in the Australian manufacturing sector. The index used is an estimate of the partial equilibrium form of the Trade Restrictiveness Index recently developed by the World Bank. This is the theoretically correct welfare based average of levels of nominal protection. The paper outlines the index and its properties. Some comments are made on the insights gained from the new series and on the record of the Labor and coalition governments in making reforms to industry assistance.