This paper examines how distance and economic size influence the level of international trade. Parameters for an international gravity trade model are estimated and used to calculate annual expected aggregate trade for Australia over the last 20 years. This model also includes a new indicator of...

The relative performance of the Australian and New Zealand economies has been the subject of many questions. Why, if New Zealand reformed so much, has the Australian economy performed so much better? Why are average incomes in Australia so much higher than in New Zealand? This paper explores...

Australia is (with New Zealand) one of the two most remote advanced economies in the world in terms of average distance from world economic activity. The rapid economic growth of countries in the Asian region in recent decades has resulted in only a modest reduction in Australia’s level of...

Jim Cairns was the only academic economist to become Treasurer. But despite his qualifications, even his own assessment was that his tenure as Treasurer was unsuccessful. While a driving force behind the 1974 budget, he was Treasurer for only seven months and was one of only a handful of...

Major shifts in the global economy — such as rapid growth in global commodity prices associated with the emergence of China and other countries — are leading to changes in Australia’s international income flows. This is attracting an increasing amount of attention as the net income deficit...