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Agricultural Processing And The Wa Economy: A General Equilibrium Analysis

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  • Johnson, Peter
  • Islam, Nazrul
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    Abstract

    This paper investigates the impact of an expansion in agricultural processing on the Western Australian economy by modifying and applying a Computable General Equilibrium (CGE) economic model of Western Australia (called WAM). WAM was used to simulate the effects of a $1 million expansion in eight agricultural processing industries. The results show that there is a range of positive impacts from agricultural processing. On average, a $1 million expansion in agricultural processing is estimated to increase the State's GSP (Gross State Product) by $649,000, and total output by $1.9 million. The expansion of the Wine and spirits industry is estimated to have the largest impact while the Textile fibres, yarns and woven fabrics industry has the smallest impact on the Western Australian economy.

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    File URL: http://purl.umn.edu/132080
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    Bibliographic Info

    Article provided by University of Melbourne, Melbourne School of Land and Environment in its journal Australasian Agribusiness Review.

    Volume (Year): 12 (2004)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:ags:auagre:132080

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    Web page: http://www.agrifood.info/review/

    Related research

    Keywords: agricultural processing; Western Australia; Computable General Equilibrium economic model of Western Australia; WAM; Gross State Product; general equilibrium analysis; Agribusiness; Agricultural Finance; Community/Rural/Urban Development; Crop Production/Industries; Farm Management; Livestock Production/Industries; Marketing; Production Economics; Productivity Analysis; ISSN 1442-6951;

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    1. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    2. Clements, Kenneth W. & Johnson, Peter L., 2000. "The minerals industry and employment in Western Australia: assessing its impacts in federal electorates," Resources Policy, Elsevier, vol. 26(2), pages 77-89, June.
    3. R.G. Gregory, 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, 08.
    4. Ahammad, Helal & Clements, Kenneth W. & Ye, Qiang, 2001. "The regional economic impact of reducing greenhouse gas emissions: Western Australia," Resources Policy, Elsevier, vol. 27(4), pages 225-233, December.
    5. Ahammad, Helal & Clements, Kenneth W., 1999. "What does minerals growth mean to Western Australia?," Resources Policy, Elsevier, vol. 25(1), pages 1-14, March.
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