Improving Australia's trade balance: A case study of agro-forest and fish products

Kashem, Mohammad Abul and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 (2022) Improving Australia's trade balance: A case study of agro-forest and fish products. Australian Economic Papers, 61 (3). pp. 494-533. ISSN 0004-900X

[img]
Preview
Text (Published Version)
Australian Economic Papers - 2022 - Kashem - Improving Australia s trade balance A case study of agro‐forest and fish.pdf
Available under License Creative Commons Attribution 4.0.

Download (4MB) | Preview

Abstract

The impact of the exchange rate (ER) on the trade balance (TB) has been discussed for many years. However, the issue has not been discussed in sufficient depth, especially in relation to the TB of agricultural products. This paper will gauge this impact on Australia, which has much potential for agro-based trade in the world market. We have applied the Bahmani-Oskooee and Hosny's approach of the linear autoregressive distributed lag model to estimate the Marshall–Lerner condition (MLC) regarding the trade of Australian agro-forest and fish (AFF) products with its five major partner countries. Quarterly data will be used for the period 1988Q1–2020Q4. Our findings support the MLC in case of the major share of Australian AFF trade. The implication is that if the market force depreciates Australian ER, the country's AFF TB will improve in the long-run.


Statistics for USQ ePrint 47317
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 22 Mar 2022 03:38
Last Modified: 23 Sep 2022 03:30
Uncontrolled Keywords: agricultural trade balance; F12; F14; Marshall–Lerner condition, Australia
Fields of Research (2020): 38 ECONOMICS > 3802 Econometrics > 380205 Time-series analysis
38 ECONOMICS > 3801 Applied economics > 380101 Agricultural economics
38 ECONOMICS > 3801 Applied economics > 380110 International economics
Socio-Economic Objectives (2020): 15 ECONOMIC FRAMEWORK > 1599 Other economic framework > 159999 Other economic framework not elsewhere classified
Identification Number or DOI: https://doi.org/10.1111/1467-8454.12257
URI: http://eprints.usq.edu.au/id/eprint/47317

Actions (login required)

View Item Archive Repository Staff Only