Australia's Involvement in Free Trade Agreements: An Economic Evaluation
Mahinda Siriwardana ()
Global Economic Review, 2006, vol. 35, issue 1, 3-20
The establishment of Free Trade Agreements (FTAs) has become an integral part of Australia's current trade policy. Australia has signed FTAs with Singapore, Thailand and the US. Possibilities for similar agreements with the Association of South East Asian Nations (ASEAN), China, and Japan are being explored. This paper examines the effects of FTAs on the Australian economy and on the trading partners, drawing lessons from simulations of a number of free trade agreements. The simulations are undertaken using the Global Trade Analysis Project (GTAP) model. By simulating the GTAP multi-country computable general equilibrium (CGE) model, the paper provides quantitative evidence concerning the welfare impact of FTAs with special reference to trade creation and trade diversion. Examining responses of various production sectors identifies the structural changes that may take place in the economy over the long run. The findings may shed light on the debate over the potential incentives to participate in multilateral trade liberalization.
Keywords: Free trade agreement; general equilibrium; GTAP model (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:glecrv:v:35:y:2006:i:1:p:3-20
Ordering information: This journal article can be ordered from
Access Statistics for this article
Global Economic Review is currently edited by Kap-Young Jeong and Taeyoon Sung
More articles in Global Economic Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().