Priority setting in international trade – application of multiple criteria decision analysis for Australian-Indonesia trade in the health sector

Alexandra Bratanova, Alicia Cameron, Maylee Thavat, Amelia Fyfield and Stefan Hajkowicz

MPRA Paper from University Library of Munich, Germany

Abstract: We demonstrate a use case of Multiple Criteria Decision Analysis (MCDA) in collaboration with industry stakeholders in forums as a way in which governments can undertake a 'soft' industry policy in international trade given the complex and changing global environment, and facilitate, rather than steer, the prioritisation of sector-specific facilitation. International trade is increasingly a balancing act with multiple competing objectives including security with open competition, economic growth with inclusion, and social and environmental protection. Post-pandemic, government efforts to stimulate export-led recovery and refine trade priorities within the rule bound by members of the World Trade Organisation are set to ramp up. To assist governments, guide their limited resources we advocate for the use of MCDA to assist with greater trade policy transparency and enable strategic decision making between multiple stakeholders While MCDA is often used in areas such as healthcare and environmental resourcing, it is not widely used in international trade. We demonstrate the use of MCDA to determine potential trade priorities in the healthcare sector under the Indonesia-Australia Comprehensive Economic Partnership Agreement. MCDA was applied in real-time during online workshops hosted by Australia's Department of Foreign Affairs and Trade with 38 industry stakeholders. The pilot determined clear priorities for trade promotion in a transparent process. These are discussed along with the potential to further develop and apply MCDA and the limitations of the analysis for effective use in international trade.

Keywords: multiple criteria decision analysis; international trade; Australia; Indonesia; healthcare (search for similar items in EconPapers)
JEL-codes: F1 F14 F15 F63 I10 (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-int, nep-opm and nep-sea
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