DEVELOPMENT OF ECONOMIC NATIONALISM IN AUSTRALIA AND IMPLICATION FOR THE CONSTRUCTION SUPPLY CHAIN

Despite rapid economic globalisation, economic nationalist measures such as a local content policy for the construction sector that has gained favour in recent years is now being promoted as a tool for rejuvenating the Australian economy. This study aims to conduct a structured literature review on the historical development of economic nationalism in Australia and its implication for the construction supply chain. The findings indicate that economic nationalism was strong with protectionist policies of tariffs and the rejection of foreign capital prevalent before 1990 but became more open from the early 2000s, with increasing import penetration from lower cost producers leading to declines in Australian manufacturing capacity. Policies such as 'buy local', subsidies to manufacturers, and strategic restrictions on foreign investment were put in place during this period. The disruptions caused by the pandemic and recent global trade tensions have resulted in a resurgent economic nationalist sentiment to sustain the declining Australian manufacturing sector to maintain a capacity to produce essential items. Construction companies that have previously sourced a large proportion of their materials and products overseas are now encouraged to increase their local content requirements to support the domestic manufacturing sector.