THE RELATIVE SIGNIFICANCE OF A RANGE OF ECONOMIC POLICIES FOR IMPROVING AUSTRALIA'S BALANCE OF TRADE
Australia faces a very serious trade problem. A large improvement in the balance of trade is required simply to stop its international debt from rising above levels which are already considered too high. In this paper, a range of economic policies are examined. Each generates a $A1 billion improvement (in 1985-86 prices) in the balance of trade after about 2 years. The following economic shocks are examined: an increase in world agricultural prices; a cut in real wages; a reduction in protection for manufacturing industries; a change in the tax mix in favour of indirect taxation; and a contraction in real domestic absorption. The impacts of these shocks are derived from simulations with ORANI, a computable general equilibrium model of the Australian economy. The effects of these shocks on the agricultural sector are studied in detail.
Year of publication: |
1988
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Authors: | Stoeckel, Andrew B. ; Higgs, Peter J. |
Published in: |
Australian Journal of Agricultural Economics. - Australian Agricultural and Resource Economics Society - AARES. - Vol. 32.1988, 02-03
|
Publisher: |
Australian Agricultural and Resource Economics Society - AARES |
Keywords: | International Relations/Trade |
Saved in:
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