The role of price and nonprice factors in predicting Australia's trade performance
AbstractThis article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 44 (2012)
Issue (Month): 21 (July)
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- C. Veeramani, 2009. "Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2541-2553.
- Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-18, Supplemen.
- Antoine Magnier & Joël Toujas-Bernate, 1994. "Technology and trade: Empirical evidences for the major five industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 494-520, September.
- Greenhalgh, Christine & Taylor, Paul & Wilson, Rob, 1994.
"Innovation and Export Volumes and Prices--A Disaggregated Study,"
Oxford Economic Papers,
Oxford University Press, vol. 46(1), pages 102-35, January.
- Greenhalgh, Christine Anne & Taylor, Paul, 1990. "Innovation and Export Volumes and Prices: A Disaggregated Study," CEPR Discussion Papers 487, C.E.P.R. Discussion Papers.
- Greenhalgh, C. & Taylor, P. & Wilson, R., 1991. "Innovation and Export Volumes and Prices- A Disaggregated Study," Economics Series Working Papers 99107, University of Oxford, Department of Economics.
- Hughes, Kirsty S., 1986. "Exports and innovation: A simultaneous model," European Economic Review, Elsevier, vol. 30(2), pages 383-399, April.
- Krishna Iyer & Alicia Rambaldi & Kam Ki Tang, 2009. "How trade and foreign investment affect the growth of a small but not so open economy: Australia?," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1525-1532.
- Wilkinson, Jenny, 1992. "Explaining Australia's Imports: 1974-1989," The Economic Record, The Economic Society of Australia, vol. 68(201), pages 151-64, June.
- Ruhul Salim & Harry Bloch, 2009. "Business expenditures on R&D and trade performances in Australia: is there a link?," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 351-361.
- Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
- George Halkos & Nickolaos Tzeremes, 2008. "Trade efficiency and economic development: evidence from a cross country comparison," Applied Economics, Taylor & Francis Journals, vol. 40(21), pages 2749-2764.
- Lawrence Edwards & Robert Z. Lawrence, 2006. "South African Trade Policy Matters: Trade Performance and Trade Policy," NBER Working Papers 12760, National Bureau of Economic Research, Inc.
- Fagerberg, Jan, 1988. "International Competitiveness: Errata," Economic Journal, Royal Economic Society, vol. 98(393), pages 1203, December.
- Krugman, Paul, 1983. "New Theories of Trade among Industrial Countries," American Economic Review, American Economic Association, vol. 73(2), pages 343-47, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.