Advanced Search
MyIDEAS: Login to save this paper or follow this series

Modelling the Potential Benefits of an Australia-China free Trade Agreement

Contents:

Author Info

  • Yinhua Mai
  • Philip Adams
  • Mingtai Fan
  • Ronglin Li
  • Zhaoyang Zheng

Abstract

In this study, we simulated three potential scenarios of an Australia-China Free Trade Agreement (FTA): removal of border protection on merchandise trade, investment facilitation, and removal of barriers to services trade. The analytical framework is a multi-country, multi-sector computable general equilibrium model, the Monash-Multi-Country (MMC) model. The FTA is found to deepen the two-country's economic partnership developed in the past fifteen or so years. On one hand, it sharpens the competitiveness of the Chinese manufacturing sector by reducing its costs of intermediate inputs. On the other hand, it raises the welfare of Australian consumers through improved terms of trade. In achieving a better utilisation of resources, adjustment of labour between sectors does occur. However, such adjustment is small in scale compared with what is occurring in the two countries amid globalisation without an FTA.

Download Info

If 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.
File URL: http://www.copsmodels.com/ftp/workpapr/g-153.pdf
File Function: Initial version, 2005-10
Download Restriction: no

File URL: http://www.copsmodels.com/elecpapr/g-153.htm
File Function: Local abstract: may link to additional material.
Download Restriction: no

Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-153.

as in new window
Length:
Date of creation: Oct 2005
Date of revision:
Handle: RePEc:cop:wpaper:g-153

Contact details of provider:
Postal: PO Box 14428, Melbourne, Victoria, 8001
Phone: 03 9919 1877
Web page: http://www.copsmodels.com/about.htm
More information through EDIRC

Related research

Keywords: China; Australia; FTA; investment liberalisation;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
  2. Yin Hua Mai, 2003. "Effects of Reducing Tariffs and Endogenous Productivity Growth," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre g-139, Victoria University, Centre of Policy Studies/IMPACT Centre.
  3. Terrie L. Walmsley & Thomas W. Hertel & Elena Ianchovichina, 2006. "Assessing The Impact Of China'S Wto Accession On Investment," Pacific Economic Review, Wiley Blackwell, Wiley Blackwell, vol. 11(3), pages 315-339, October.
  4. Yin Hua Mai & Mark Horridge & Frances Perkins, 2003. "Estimating the effects of China's Accession to the World Trade Organisation," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre g-137, Victoria University, Centre of Policy Studies/IMPACT Centre.
  5. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Yinhua Mai & Philip Adams, 2005. "Trade Liberalisation Scenarios for Wool Under an Australia-China Free Trade Agreement," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre g-156, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Yinhua Mai, 2006. "Removing border protection on wheat and rice: effects on rural income and food securities in China," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre g-160, Victoria University, Centre of Policy Studies/IMPACT Centre.
  3. Wainio, John & Gehlhar, Mark J. & Dyck, John H., 2011. "Selected Trade Agreements and Implications for U.S. Agriculture," Economic Research Report, United States Department of Agriculture, Economic Research Service 102754, United States Department of Agriculture, Economic Research Service.
  4. Shunli Yao, 2007. "Chinese agricultural reform, the World Trade Organization and preferential trade negotiations," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in: Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA, volume 60, pages 187-210 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  5. Plummer, Michael G., 2006. "Toward Win-Win Regionalism in Asia: Issues and Challenges in Forming Efficient Trade Agreements," Working Papers on Regional Economic Integration, Asian Development Bank 5, Asian Development Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:g-153. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.