Trade flows between Australia and China: An opportunity for a free trade agreement

Daniel McDonald, Roneel Nair, Gil Rodriguez and Benjamin L. Buetre

No 137935, 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia from Australian Agricultural and Resource Economics Society

Abstract: The seemingly high degree of trade complementarity between Australia and China indicates that freer trade between these two countries is likely to lead to mutual trade gains. In this paper, this complementarity was assessed based on the use of revealed comparative advantage (RCA) indices. It is likely that trade gains could be achieved by Australia and China by adopting a bilateral free trade agreement. General equilibrium models – such as ABARE’s global trade and environment model (GTEM) – have been used by many researchers to quantify the economic effects of free trade agreements in recent times. This paper discusses some of the key issues involved in analysing the economic benefits of an Australia–China free trade agreement using GTEM.

Keywords: International Relations/Trade; Political Economy; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 17
Date: 2005
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare05:137935

DOI: 10.22004/ag.econ.137935

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