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SYDNEY - Distance and size still present challenges for Australian firms trying to compete on the world stage, according to a report.
A Competing from Australia document compiled by the Centre for Economic Development of Australia, reflects Australia's relatively weak integration in the world economy.
One paper by Australian National University professor Glen Withers noted that Australia ranked 20th out of 22 nations for trade intensity.
According to Professor Withers, Australia was for a long time capable of challenging its distance from the rest of the world.
But contrary to popular belief, advances in communications technology were now accentuating the benefits of proximity - to Australia's disadvantage.
To overcome that disadvantage, Australia needed to redouble is efforts in the telecommunications and transport infrastructure area.
"Two particular requirements are for Australia to ensure it has telecommunications and transport provision at best practice," Professor Withers said.
"These are Australia's essential links to the global community."
Professor John Houghton notes in the report that Australia ranks 27th out of 29 nations for intra-industry trade as a share of total manufacturing trade - indicating low involvement with "global supply chains".
The chief executive of the centre, David Byers, said there were important policy lessons to learn from the report.
"Distance is not dead as a challenge for Australia," Byers said.
"Technology is shrinking the distances between people. But the economic evidence is that distance continues to make it difficult to trade and collaborate."
- AAP
