IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v19y2014i2p205-229.html
   My bibliography  Save this article

Sectoral analysis of an Australia–India free trade agreement

Author

Listed:
  • Sang-Wook (Stanley) Cho
  • Gordon Yoon

Abstract

This paper analyses potential sectoral effects of Australia and India signing a free trade agreement. We construct a static applied general equilibrium model, and using a social accounting matrix, we calibrate it to match the Australian data sector by sector. We then perform a numerical experiment of removing all import tariffs between Australia and India. Additionally, we compare this benchmark case with one scenario where the tariffs are partially eliminated, and another scenario with more realistic trade elasticities. We quantify how trade liberalisation leads to falling consumer prices in the import sectors, increased production in the export sectors and aggregate welfare gains. Our analysis indicates a social welfare gain of around 0.4% which is robust to different estimates of trade elasticities, or in the case in which perhaps more realistically reflecting the recent episodes of free trade agreement we partially remove bilateral trade barriers.

Suggested Citation

  • Sang-Wook (Stanley) Cho & Gordon Yoon, 2014. "Sectoral analysis of an Australia–India free trade agreement," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(2), pages 205-229, April.
    • Handle: RePEc:taf:rjapxx:v:19:y:2014:i:2:p:205-229
    DOI: 10.1080/13547860.2013.820469
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2013.820469
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2013.820469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Timothy J. Kehoe, 1996. "Social accounting matrices and applied general equilibrium models," Working Papers 563, Federal Reserve Bank of Minneapolis.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Gabriel Mhonyera & Daniel Francois Meyer, 2023. "The Impact of AfCFTA on Welfare and Trade: Nigeria and South Africa in Light of Core Export Competences," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Peichl, 2009. "The Benefits and Problems of Linking Micro and Macro Models — Evidence from a Flat Tax Analysis," Journal of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 301-329, November.
    2. Dario Debowicz, 2016. "A social accounting matrix for Iraq," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-19, December.
    3. Peichl, Andreas, 2008. "The benefits of linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 08-6, University of Cologne, FiFo Institute for Public Economics.
    4. Cho, Sang-Wook (Stanley) & Díaz, Julián P., 2013. "Trade integration and the skill premium: Evidence from a transition economy," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 601-620.
    5. (Stanley) Cho, Sang-Wook & P. Díaz, Julián, 2008. "Trade Liberalization in Latin America and Eastern Europe: the Cases of Ecuador and Slovenia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 1002-1045.
    6. Sang‐Wook (Stanley) Cho & Julian P. Diaz, 2011. "The Welfare Impact Of Trade Liberalization," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 379-397, April.
    7. Adelar Fochezatto & Rosana Curzel, 2001. "Método de Obtenção da Matriz de Contabilidade Social Regional: Rio Grande do Sul, 1995," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 083, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    8. Rodrigues, Renato & Linares, Pedro & Gómez-Plana, Antonio G., 2011. "A CGE Assessment of the Impacts on Electricity Production and CO2 Emissions of a Residential Demand Response Program in Spain/Impacto sobre la producción eléctrica y emisiones de CO2 de un programa de," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 665(36.)-66, Agosto.
    9. Tae-Jeong Kim & Geoffrey J. D. Hewings, 2013. "Inter-regional endogenous growth under the impacts of demographic changes," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3431-3449, August.
    10. Peichl, Andreas, 2005. "Die Evaluation von Steuerreformen durch Simulationsmodelle," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 05-1, University of Cologne, FiFo Institute for Public Economics.
    11. Hidayat Amir & Ferry Irawan & Djoni Hartono & Anda Nugroho, 2015. "The Development of Fiscal Social Accounting Matrix for Indonesia," Working Papers in Economics and Business 201506, Faculty of Economics and Business, University of Indonesia, revised Oct 2015.
    12. Sang-Wook (Stanley) Cho & Juliàn P. Dìaz, 2014. "Accounting for Skill Premium Patterns during the EU Accession: Productivity or Trade?," Discussion Papers 2014-14, School of Economics, The University of New South Wales.
    13. Cardenete Flores, M.A & Llop Llop, M., 2005. "Modelos multisectoriales de equilibrio general aplicado en España: Una revisión/Multisectorial Applied General Equilibrium Models in Spain: a Review," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 23, pages 385-404, Agosto.
    14. Ignacio Cazcarro & Rosa Duarte & Julio Sanchez Choliz & Cristina Sarasa, 2011. "Water Rates And The Responsibilities Of Direct, Indirect And End-Users In Spain," Economic Systems Research, Taylor & Francis Journals, vol. 23(4), pages 409-430, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:19:y:2014:i:2:p:205-229. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.