Buying Australian

Mark Horridge, Brian R. Parmenter and Peter Warr

The Economic Record, 1987, vol. 63, issue 3, 231-246

Abstract: We investigate the short‐run effects on the trade balance and on aggregate employment of persuading domestic residents to switch expenditure from imports to domestic commodities. Simulations with ORANI indicate that the favourable initial effects of such switches may be offset significantly by induced demand for imports as domestic production expands and by the inflationary effects of domestic expansion which erode the international competitiveness of exports and import‐competing products.

Date: 1987
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https://doi.org/10.1111/j.1475-4932.1987.tb00654.x

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