IDEAS home Printed from https://ideas.repec.org/p/adl/wpaper/2016-10.html
   My bibliography  Save this paper

Trade between Australia and the EU, 1990 - 2015

Author

Listed:
  • Richard Pomfret

    ()

  • Patricia Sourdin

    (School of Economics, University of Adelaide)

Abstract

The geographical composition of the EU has changed dramatically since 1989 as the enlargements of 1995 (Austria, Sweden and Finland) and 2004-13 (Eastern European countries plus Cyprus and Malta) more than doubled the number of EU member countries. This paper reviews the level, direction and composition of Australian trade with EU member countries from 1990 to 2015. Australia-EU trade remains dominated by relations with the original six member countries and the UK. A striking feature has been the rapid increase in trade between Australia and the Eastern European countries that joined the EU in 2004. Analysis of the new EU members' trade with Australia highlights intra-EU regional value chains as a pathway by which the new EU members rapidly became exporters of manufactured goods such as cars. Thus, the 2004 EU enlargement benefited Australia by providing cars that fitted many Australian consumers' preferences and budgets, and rapid economic growth in the Eastern European economies provided markets for Australian exports. Part of the reason why EU countries have remained attractive trade partners is that the costs of international trade between Australia and EU countries have remained low relative to trade costs between Australia and other countries; the level and determinants of bilateral trade costs are analyzed using disaggregated ABS data.

Suggested Citation

  • Richard Pomfret & Patricia Sourdin, 2016. "Trade between Australia and the EU, 1990 - 2015," School of Economics Working Papers 2016-10, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:2016-10
    as

    Download full text from publisher

    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2016-10.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hartmut Egger & Peter Egger, 2006. "International Outsourcing and the Productivity of Low-Skilled Labor in the EU," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 98-108, January.
    2. Guglielmo Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "On the bilateral trade effects of free trade agreements between the EU-15 and the CEEC-4 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 573-573, October.
    3. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    4. Hartmut Egger & Peter Egger, 2003. "Outsourcing and skill-specific employment in a small economy: Austria after the fall of the Iron Curtain," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 625-643, October.
    5. Michael Pfaffermayr & Peter Egger & Andrea Weber, 2007. "Sectoral adjustment of employment to shifts in outsourcing and trade: evidence from a dynamic fixed effects multinomial logit model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 559-580.
    6. repec:wbk:wbpubs:28010 is not listed on IDEAS
    7. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 7-46, April.
    8. Andrew K. Rose & Eric van Wincoop, 2001. "National Money as a Barrier to International Trade: The Real Case for Currency Union," American Economic Review, American Economic Association, vol. 91(2), pages 386-390, May.
    9. Harrigan, James, 1993. "OECD imports and trade barriers in 1983," Journal of International Economics, Elsevier, vol. 35(1-2), pages 91-111, August.
    10. Filippo Di Mauro & Katrin Forster, "undated". "Globalisation and the competitiveness of the Euro area," Working Papers 5, Department of the Treasury, Ministry of the Economy and of Finance.
    11. Robert C. Johnson & Guillermo Noguera, 2012. "Proximity and Production Fragmentation," American Economic Review, American Economic Association, vol. 102(3), pages 407-411, May.
    12. Slavo Radosevic & Andrew Roziek, 2005. "Foreign Direct Investment and Restructuring in the Automotive Industry in Central and East Europe," UCL SSEES Economics and Business working paper series 53, UCL School of Slavonic and East European Studies (SSEES).
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:adl:wpaper:2016-10. 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: (Eran Binenbaum). General contact details of provider: http://edirc.repec.org/data/decadau.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.