The authors investigate the short-run effects on the trade balance and on aggregate employment of persuading domestic re sidents to switch expenditure from imports to domestic commodities. S imulations with ORANI indicate that the favorable initial effects of such switches may be offset significantly by induced demand for impor ts as domestic production expands and by the inflationary effects of domestic expansion which erode the international competitiveness of e xports and import-competing products. Copyright 1987 by The Economic Society of Australia.
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Volume (Year): 63 (1987)
Issue (Month): 182 (September)
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