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Economic and welfare impacts of prospective India–Australia FTA using GTAP and SMART models

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  • Shahid Ahmed

Abstract

This study investigates the potential economic impacts of prospective India–Australia Free Trade Agreement (FTA) using a Computable General Equilibrium (CGE) model. Four hypothetical tariff liberalisation scenarios are examined in this study focusing on short and long run. The study reveals that both India and Australia gain in terms of welfare. Allocative efficiency for Australia and India broadly improves, suggesting that net trade creation occurs. The study recommends partial and selected tariff liberalisation as the best strategy in India's interest while negotiating prospective India–Australia FTA.

Suggested Citation

  • Shahid Ahmed, 2011. "Economic and welfare impacts of prospective India–Australia FTA using GTAP and SMART models," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 3(4), pages 396-417.
    • Handle: RePEc:ids:ijbema:v:3:y:2011:i:4:p:396-417
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    Cited by:

    1. Xiang, Hongjin & Kuang, Yanxiang & Li, Chenhua, 2017. "Impact of the China–Australia FTA on global coal production and trade," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 65-78.

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