Providing Duty-Free Access to Australian Markets for Least-Developed COuntries: a General Equilibrium Analysis
AbstractThe Doha ministerial declaration commits industrialised countries to liberalising access for least-developed countries (LDCs) to their markets. Preferential trade policies have diverse impacts on the initiating country and its trading partners. These effects are of concern to scholars and policy makers. We use Australia as a case study to quantify the direct and indirect effects of providing preferential access to LDC imports entering Australian markets, using a global general equilibrium model of the world economy. LDCs are projected to benefit; Australia is predicted to lose, reflecting the dominance of trade diversion over trade creation effects and adverse terms of trade effects. However, the magnitude of the adverse effect on Australia is small. If one was to view this initiative as an exercise in foreign aid, it suggests that Australia can provide a significant benefit to the poorest nations with which it trades, at almost no cost to itself.
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Bibliographic InfoPaper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 06-09.
Length: 24 pages
Date of creation: 2006
Date of revision:
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More information through EDIRC
economic development; numerical simulation; preferential trading arrangements; trade policy;
Other versions of this item:
- Xiao-guang Zhang & George Verikios, 2007. "Providing Duty-Free Access to Australian Markets for Least-Developed Countries: A General Equilibrium Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(3), pages 239-252, 09.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
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