Trade agreements and trade opportunities: And flexible approach for modeling australian export and import elasticities

Kevin J. Fox, Ulrich Kohli, Alice Shiu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

Patterns of trade have changed enormously over the last 30 years, particularly due to the economic emergence of several Asian countries. With the increasing international tendency for bilateral preferential trade agreements, it is important for countries to be aware of trade substitution possibilities. This paper estimates import and export price elasticities for Australia and its major trading partners in Europe and Asia, 1958 to 2002, using a fully flexible version of the Symmetric Normalized Quadratic aggregator function. Imports and exports are disaggregated into six regions, covering 17 countries. Our results illuminate the (changing) substitution and complementarity patterns for Australian foreign trade, highlighting trading opportunities in the face of a changing international environment.
Original languageEnglish
Pages (from-to)513-530
Number of pages18
JournalReview of International Economics
Volume18
Issue number3
DOIs
Publication statusPublished - 1 Aug 2010

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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