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Buying Australian

Author

Listed:
  • MARK HORRIDGE
  • BRIAN R. PARMENTER
  • PETER G. WARR

Abstract

We investigate the short‐run effects on the trade balance and on aggregate employment of persuading domestic residents to switch expenditure from imports to domestic commodities. Simulations with ORANI indicate that the favourable initial effects of such switches may be offset significantly by induced demand for imports as domestic production expands and by the inflationary effects of domestic expansion which erode the international competitiveness of exports and import‐competing products.

Suggested Citation

  • Mark Horridge & Brian R. Parmenter & Peter G. Warr, 1987. "Buying Australian," The Economic Record, The Economic Society of Australia, vol. 63(3), pages 231-246, September.
    • Handle: RePEc:bla:ecorec:v:63:y:1987:i:3:p:231-246
    DOI: 10.1111/j.1475-4932.1987.tb00654.x
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    References listed on IDEAS

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    1. Dixon, Peter B. & Parmenter, B. R. & Powell, Alan A., 1984. "The role of miniatures in computable general equilibrium modelling : Experience from ORANI," Economic Modelling, Elsevier, vol. 1(4), pages 421-428, October.
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