The Impact of Federation on Australia's Trade Flows

Douglas Irwin

No 12160, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In 1901, six Australian states joined together in political and economic union, creating an internal free trade area and adopting a common external tariff. This paper investigates the impact of federation on Australia's internal and international trade flows by studying changes in the "border effect" over this time. This is possible because Australian states reported intra-Australian trade prior to 1901 and for eight years after federation. The results indicate that federation itself produced little change in Australia's trade patterns, but that the border effect increased substantially between 1906 and 1909 when the protectionist Lyne Tariff was imposed.

JEL-codes: F1 N7 (search for similar items in EconPapers)
Date: 2006-04
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (10)

Published as Douglas A. Irwin, 2006. "The Impact of Federation on Australia's Trade Flows," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 315-324, 09.

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