The impact of the Asian Crisis on Australia's primary exports: why it wasn't so bad
This article explores the modest impact of the Asian Crisis on Australia’s primary commodity exports. Simulations using a global general equilibrium model show: (i) as capital flees Asia, investment in Australia increases and the trade deficit grows; (ii) while terms of trade deteriorate in the short run, they improve in the medium run as import demand increases in the crisis countries; (iii) exports of primary commodities expand as the crisis countries try to export more; (iv) more income‐elastic primary commodities fare less well than the income‐inelastic foodstuffs as incomes decline in the crisis countries; (v) Australia’s relatively low dependence on manufactured exports was a buffer as manufactured exports came under heavy pressure from exports from the crisis countries.
Year of publication: |
2000
|
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Authors: | Duncan, Ronald C. ; Yang, Yongzheng |
Published in: |
Australian Journal of Agricultural and Resource Economics. - Australian Agricultural and Resource Economics Society - AARES. - Vol. 44.2000, 3
|
Publisher: |
Australian Agricultural and Resource Economics Society - AARES |
Keywords: | International Relations/Trade |
Saved in:
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