IDEAS home Printed from https://ideas.repec.org/a/bla/econpa/v39y2020i2p152-161.html
   My bibliography  Save this article

Adoption of Blockchain Technology in the Australian Grains Trade: An Assessment of Potential Economic Effects

Author

Listed:
  • Don Gunasekera
  • Ernesto Valenzuela

Abstract

Recent analysis of Blockchain use has highlighted considerable potential productivity gains arising from lower transaction costs between buyers and sellers of goods. This has been shown by recent examples of Blockchain use in the Australian grains sector. In this paper, we have further developed and quantified this concept of productivity gain by undertaking several illustrative scenarios using a general equilibrium model of the global economy. Our analysis indicates that an assumed modest growth (five per cent) in productivity due to Blockchain use in the grains sector could raise output by eight per cent over the medium term. If this is accompanied by Blockchain use in the Australian finance sector, grains output could reach ten per cent. This reflects the effect of reduction in transaction costs due to the use of Blockchain technology as a “distributed ledger technology” in grain trading. Further, it is anticipated that the wider effects of Blockchain‐driven productivity enhancement of the Australian finance sector could contribute to approximately 2.5 per cent increase in GDP in the medium term, relative to what would otherwise be.

Suggested Citation

  • Don Gunasekera & Ernesto Valenzuela, 2020. "Adoption of Blockchain Technology in the Australian Grains Trade: An Assessment of Potential Economic Effects," Economic Papers, The Economic Society of Australia, vol. 39(2), pages 152-161, June.
    • Handle: RePEc:bla:econpa:v:39:y:2020:i:2:p:152-161
    DOI: 10.1111/1759-3441.12274
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1759-3441.12274
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1759-3441.12274?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-325, May.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Ernesto Valenzuela & Kym Anderson, 2011. "Projecting the World Economy to 2050: Agriculture in the Economy-wide GTAP Model," Centre for International Economic Studies Working Papers 2011-01, University of Adelaide, Centre for International Economic Studies.
    4. Gifford, K. & Cheng, J., 2016. "Implementation of real-time settlement for banks using decentralised ledger technology: policy and legal implications," Financial Stability Review, Banque de France, issue 20, pages 143-151, April.
    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


    Cited by:

    1. Lim, Jing Zhi & Toh, Mun-Heng & Xie, Taojun, 2022. "Impact of Digital Economy Agreements on ASEAN Development: Estimates from a CGE Model," Conference papers 333441, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Saleem Malik & Mehmood Chadhar & Savanid Vatanasakdakul & Madhu Chetty, 2021. "Factors Affecting the Organizational Adoption of Blockchain Technology: Extending the Technology–Organization–Environment (TOE) Framework in the Australian Context," Sustainability, MDPI, vol. 13(16), pages 1-33, August.
    3. Jamilya Nurgazina & Udsanee Pakdeetrakulwong & Thomas Moser & Gerald Reiner, 2021. "Distributed Ledger Technology Applications in Food Supply Chains: A Review of Challenges and Future Research Directions," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    4. Pandey, Vivekanand & Pant, Millie & Snasel, Vaclav, 2022. "Blockchain technology in food supply chains: Review and bibliometric analysis," Technology in Society, Elsevier, vol. 69(C).
    5. Anandika Sharma & Anupam Sharma & Tarunpreet Bhatia & Rohit Kumar Singh, 2023. "Blockchain enabled food supply chain management: A systematic literature review and bibliometric analysis," Operations Management Research, Springer, vol. 16(3), pages 1594-1618, September.
    6. Ashton de Silva & Mikayla Novak, 2020. "Introduction to the Special Section," Economic Papers, The Economic Society of Australia, vol. 39(2), pages 101-103, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    2. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    3. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    4. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    5. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    6. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    8. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    9. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    10. Dhoubhadel, Sunil P. & Taheripour, Farzad & Stockton, Mathew C., 2016. "Livestock Demand, Global Land Use, and Induced Greenhouse Gas Emissions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235271, Agricultural and Applied Economics Association.
    11. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.
    12. Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    13. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, University Library of Munich, Germany.
    14. Palatnik, Ruslana R. & Kan, Iddo & Rapaport-Rom, Mickey & Ghermandi, Andrea & Eboli, Fabio & Shechter, Mordechai, 2011. "Land transformation analysis and application," Conference papers 332155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Hareau, Guy Gaston & Norton, George W. & Mills, Bradford F. & Peterson, Everett B., 2004. "Potential Benefits Of Transgenic Rice In Asia: A General Equilibrium Approach," 2004 Annual meeting, August 1-4, Denver, CO 20334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Lee, Hiro & van der Mensbrugghe, Dominique, 2005. "The impact of the US safeguard measures on Northeast Asian producers: General equilibrium assessments," MPRA Paper 82288, University Library of Munich, Germany.
    17. Lips, Markus & Rieder, Peter, 2002. "Endogenous adjusted Output Quotas - The Abolishment of the Raw Milk Quota in the European Union," Conference papers 330980, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Kafigi Jeje, 2020. "Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries," Journal of Economics and Behavioral Studies, AMH International, vol. 12(3), pages 1-22.
    19. Dixon, Peter & Rimmer, Maureen, 2021. "A GTAP Historical Simulation from 2004 to 2014," Conference papers 333258, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Jo H.M. Wijnands & Harry J. Bremmers & Bernd M.J. van der Meulen & Krijn J. Poppe, 2011. "Food Legislation and Competitiveness in the EU Food Industry," Chapters, in: Emiel F.M. Wubben (ed.), Institutions and Regulation for Economic Growth?, chapter 5, Edward Elgar Publishing.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econpa:v:39:y:2020:i:2:p:152-161. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.