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The Armington Model

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Author Info

  • Peter Lloyd
  • Xiao-guang Zhang

    (Productivity Commission)

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    Abstract

    A Productivity Commission Staff Working Paper, The Armington Model, by Peter Lloyd and Xiao-guang Zhang was released on 8 February 2006, in conjunction with an additional staff working paper, Armington Elasticities and Terms of Trade Effects in Global CGE Models. The paper explores how models adopting the Armington formulation differ from traditional models, in their quantitative properties and underlying theory of trade. In publishing its research in this area, the Commission hopes to clarify issues that arise as single-country and global trade models are increasingly used to assess the potential impacts of various types of trade liberalisation. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0012/60411/armingtonmodel.pdf
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    File URL: http://www.pc.gov.au/research/staffworkingpaper/armingtonmodel
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    Bibliographic Info

    Paper provided by Productivity Commission, Government of Australia in its series Staff Working Papers with number 0602.

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    Length: 42 pages.
    Date of creation: Jan 2006
    Date of revision:
    Publication status: Published by the Productivity Commission, Australia.
    Handle: RePEc:ris:prodsw:0602

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    Related research

    Keywords: armington model; trade liberalisation; terms of trade;

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    References

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    1. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
    2. John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204.
    3. Avinash K. Dixit & Gene M. Grossman, 1982. "Trade and Protection with Multistage Production," NBER Working Papers 0794, National Bureau of Economic Research, Inc.
    4. Xiao-guang Zhang, 2006. "Armington Elasticities and Terms of Trade Effects in Global CGE Models," Staff Working Papers 0601, Productivity Commission, Government of Australia.
    5. Deardorff, Alan V. & Stern, Robert M., 1981. "A disaggregated model of world production and trade: An estimate of the impact of the Tokyo Round," Journal of Policy Modeling, Elsevier, vol. 3(2), pages 127-152, May.
    6. Mika Saito, 2004. "Armington Elasticities in Intermediate Inputs Trade: A Problem in Using Multilateral Trade Data," IMF Working Papers 04/22, International Monetary Fund.
    7. Clinton R. Shiells & Kenneth A. Reinert, 1993. "Armington Models and Terms-of-Trade Effects: Some Econometric Evidence for North America," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 299-316, May.
    8. Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
    9. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
    10. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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    Cited by:
    1. Stratan, Alexandru & Chistruga, Marcel, 2012. "The Macromodel of the Moldovan Economy Medium-Term Forecast for Moldova," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 68-84, June.
    2. Botta, Alberto, 2010. "The Palestinian economy and its trade pattern: Stylised facts and alternative modelling strategies," MPRA Paper 29719, University Library of Munich, Germany.
    3. Siriwardana, Mahinda, 2007. "The Australia-United States Free Trade Agreement: An economic evaluation," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 117-133, February.

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