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The economic impacts of the China-Australia Free Trade Agreement - A general equilibrium analysis

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  • Qi, Chaoying
  • Zhang, James Xiaohe

Abstract

After 21 rounds of intense negotiations over nearly a decade, the deal of China-Australia Free Trade Agreement was finally completed in late November 2014. This paper attempts to examine both the causes and consequences of this delayed conclusion by running simulation experiments on a computable general equilibrium model, to see how the free trade agreement affects the world economy not only on the two countries involved, but also on the rest of the world with a particular reference to New Zealand. Based on the simulation results, policy implications are generated.

Suggested Citation

  • Qi, Chaoying & Zhang, James Xiaohe, 2018. "The economic impacts of the China-Australia Free Trade Agreement - A general equilibrium analysis," China Economic Review, Elsevier, vol. 47(C), pages 1-11.
    • Handle: RePEc:eee:chieco:v:47:y:2018:i:c:p:1-11
    DOI: 10.1016/j.chieco.2017.11.002
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    References listed on IDEAS

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    Cited by:

    1. Shilong Yang & Xiao Liang & Zhichao Lou & Yanwen Tan & Abdelrahman Ali, 2024. "Analysing the consequences of Regional Comprehensive Economic Partnership on the agricultural economies of China, Australia and New Zealand," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(7), pages 362-381.
    2. Timsina, Krishna P. & Culas, Richard J., 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    3. Ostashko T., Olefir V., 2019. "Prospects of free trade with China: development of domestic export and risks of import dependence," Economy and Forecasting, Valeriy Heyets, issue 1, pages 128-155.
    4. Huang, Rui & Chen, Guangwu & Lv, Guonian & Malik, Arunima & Shi, Xunpeng & Xie, Xiaotian, 2020. "The effect of technology spillover on CO2 emissions embodied in China-Australia trade," Energy Policy, Elsevier, vol. 144(C).
    5. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    6. Wu, Qunli & Ma, Zhe & Meng, Fanxing, 2022. "Long-term impacts of carbon allowance allocation in China: An IC-DCGE model optimized by the hypothesis of imperfectly competitive market," Energy, Elsevier, vol. 241(C).
    7. Zembele, Adwell, 2022. "A General Equilibrium Analysis Of The Potential Effects Of The African Continental Free Trade Area On The Malawi Economy," Conference papers 333393, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Alassane D. Yeo & Aimin Deng, 2019. "The trade policy effect in international trade: case of Pakistan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-17, December.
    9. Yuquan W. Zhang & Yong Geng & Bin Zhang & Shaohua Yang & David V. Izikowitz & Haitao Yin & Fei Wu & Haishan Yu & Huiwen Liu & Weiduo Zhou, 2023. "Examining industrial air pollution embodied in trade: implications of a hypothetical China-UK FTA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13253-13279, November.
    10. Zhang, Yumei & Diao, Xinshen, 2020. "The changing role of agriculture with economic structural change – The case of China," China Economic Review, Elsevier, vol. 62(C).

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    Keywords

    ChAFTA; FTA; Bilateral trade; GTAP;
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