The role of price and nonprice factors in predicting Australia's trade performance
This article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
Volume (Year): 44 (2012)
Issue (Month): 21 (July)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fagerberg, Jan, 1988.
Royal Economic Society, vol. 98(391), pages 355-74, June.
- Greenhalgh, Christine & Taylor, Paul & Wilson, Rob, 1994.
"Innovation and Export Volumes and Prices--A Disaggregated Study,"
Oxford Economic Papers,
Oxford University Press, vol. 46(1), pages 102-35, January.
- Greenhalgh, Christine Anne & Taylor, Paul, 1990. "Innovation and Export Volumes and Prices: A Disaggregated Study," CEPR Discussion Papers 487, C.E.P.R. Discussion Papers.
- Greenhalgh, C. & Taylor, P. & Wilson, R., 1991. "Innovation and Export Volumes and Prices- A Disaggregated Study," Economics Series Working Papers 99107, University of Oxford, Department of Economics.
- Krishna Iyer & Alicia Rambaldi & Kam Ki Tang, 2009. "How trade and foreign investment affect the growth of a small but not so open economy: Australia?," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1525-1532.
- C. Veeramani, 2009. "Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2541-2553.
- Wilkinson, Jenny, 1992. "Explaining Australia's Imports: 1974-1989," The Economic Record, The Economic Society of Australia, vol. 68(201), pages 151-64, June.
- Krugman, Paul, 1983. "New Theories of Trade among Industrial Countries," American Economic Review, American Economic Association, vol. 73(2), pages 343-47, May.
- Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-18, Supplemen.
- Antoine Magnier & Joël Toujas-Bernate, 1994. "Technology and trade: Empirical evidences for the major five industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(3), pages 494-520, September.
- George Halkos & Nickolaos Tzeremes, 2008. "Trade efficiency and economic development: evidence from a cross country comparison," Applied Economics, Taylor & Francis Journals, vol. 40(21), pages 2749-2764.
- Lawrence Edwards & Robert Z. Lawrence, 2006. "South African Trade Policy Matters: Trade Performance and Trade Policy," NBER Working Papers 12760, National Bureau of Economic Research, Inc.
- Edward Oczkowski & Kishor Sharma, 2005. "Determinants of Efficiency in Least Developed Countries: Further Evidence from Nepalese Manufacturing Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 617-630.
- Ruhul Salim & Harry Bloch, 2009. "Business expenditures on R&D and trade performances in Australia: is there a link?," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 351-361.
- Hughes, Kirsty S., 1986. "Exports and innovation: A simultaneous model," European Economic Review, Elsevier, vol. 30(2), pages 383-399, April.
- Fagerberg, Jan, 1988. "International Competitiveness: Errata," Economic Journal, Royal Economic Society, vol. 98(393), pages 1203, December.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:44:y:2012:i:21:p:2679-2686. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.