The impact of the Asian Crisis on Australia's primary exports: why it wasn't so bad
This article explores the modest impact of the Asian Crisis on Australia’s primary commodity exports. Simulations using a global general equilibrium model show: (i) as capital flees Asia, investment in Australia increases and the trade deficit grows; (ii) while terms of trade deteriorate in the short run, they improve in the medium run as import demand increases in the crisis countries; (iii) exports of primary commodities expand as the crisis countries try to export more; (iv) more income‐elastic primary commodities fare less well than the income‐inelastic foodstuffs as incomes decline in the crisis countries; (v) Australia’s relatively low dependence on manufactured exports was a buffer as manufactured exports came under heavy pressure from exports from the crisis countries.
Volume (Year): 44 (2000)
Issue (Month): 3 (September)
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- Ianchovichina, Elena & Hertel, Thomas W., 1999.
"The East Asian Economic Crisis: It's Not All Bad News,"
Agricultural and Applied Economics Association, vol. 14(2).
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- Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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