International Trade Performance: The Gravity of Australia's Remoteness

Bryn Battersby and Robert Ewing
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Robert Ewing: Treasury, Government of Australia

No 2005-03, Treasury Working Papers from The Treasury, Australian Government

Abstract: This paper examines how distance and economic size influence the level of international trade. Parameters for an international gravity trade model are estimated and used to calculate annual expected aggregate trade for Australia over the last 20 years. This model also includes a new indicator of economic remoteness that statistically identifies each country's distance from world economic activity. The results indicate that Australia may have been performing slightly better than the gravity trade model predicts given its geographic remoteness. The parameters from the model are also used to construct a simple indicator of trade performance, which suggests that Australia performs well relative to a range of similarly developed economies.

Keywords: Gravity trade model; Australia; remoteness (search for similar items in EconPapers)
JEL-codes: F1 F17 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2005-06, Revised 2005-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://archive.treasury.gov.au/documents/999/PDF/GravityandTrade.pdf First version, 2005 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tsy:wpaper:wpaper_tsy_wp_2005_3

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