EXPORTS AND EFFICIENCY PERFORMANCE OF AUSTRALIAN MANUFACTURING SMALL AND MEDIUM ENTERPRISES (SMES): EVIDENCE FROM BUSINESS LONGITUDINAL DATABASE (BLD) 2005 - 2007.

This paper examines efficiency performance of exporting and non-exporting Australian manufacturing SMEs using Business Longitudinal Database released by the Australian Bureau of Statistics for the period 2005-2007. Results from an analysis of 844 manufacturing SMEs find that Australian manufacturing SMEs achieved a high technical efficiency level, especially the exporting SMEs at more than 80 percent. The non-exporting SMEs tended to have lower efficiency level compared to their exporting peers. The results also show an increase in technical efficiency level for both exporting and non-exporting manufacturing SMEs during the period examined. There is evidence of self-selection of more efficient firms into exporting from the increase in exports participation and efficiency level as well as better performance of exporting SMEs. The paper calls for a focus on improving SME efficiency performance as a way to increase their participation in exports and not only the traditional instruments [ABSTRACT FROM AUTHOR]