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Agricultural Processing and the WA Economy: A General Equilibrium Analysis

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  • Johnston, Peter
  • Islam, Nazrul

Abstract

This paper investigates the impact of an expansion in agricultural processing on the Western Australian economy by modifying and applying a Computable General Equilibrium (CGE) economic model of Western Australia (called WAM). WAM was used to simulate the effects of a $1 million expansion in eight agricultural processing industries. The results show that there is a range of positive impacts from agricultural processing. On average, a $1 million expansion in agricultural processing is estimated to increase the State’s GSP (Gross State Product) by $649,000, and total output by $1.9 million. The expansion of the Wine and spirits industry is estimated to have the largest impact while the Textile fibres, yarns and woven fabrics industry has the smallest impact on the Western Australian economy.

Suggested Citation

  • Johnston, Peter & Islam, Nazrul, 2003. "Agricultural Processing and the WA Economy: A General Equilibrium Analysis," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57901, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:57901
    DOI: 10.22004/ag.econ.57901
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    1. Clements, Kenneth W. & Ahammad, Helal & Qiang, Ye, 1996. "New mining and mineral-processing projects in Western Australia: Effects of employment and the macro-economy," Resources Policy, Elsevier, vol. 22(4), pages 293-346, December.
    2. Helal Ahammad & Kenneth W. Clements & Ye Qiang, 2001. "The Economic Impact of Reducing Greenhouse Gas Emissions in WA," Economics Discussion / Working Papers 01-23, The University of Western Australia, Department of Economics.
    3. R.G. Gregory, 1976. "Some Implications Of The Growth Of The Mineral Sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 20(2), pages 71-91, August.
    4. Ahammad, Helal & Clements, Kenneth W. & Ye, Qiang, 2001. "The regional economic impact of reducing greenhouse gas emissions: Western Australia," Resources Policy, Elsevier, vol. 27(4), pages 225-233, December.
    5. Clements, Kenneth W. & Johnson, Peter L., 2000. "The minerals industry and employment in Western Australia: assessing its impacts in federal electorates," Resources Policy, Elsevier, vol. 26(2), pages 77-89, June.
    6. Ahammad, Helal & Clements, Kenneth W., 1999. "What does minerals growth mean to Western Australia?," Resources Policy, Elsevier, vol. 25(1), pages 1-14, March.
    7. K.W. Clements & Y. Qiang, 1998. "A New Input-output Table for Western Australia - Part 2," Economics Discussion / Working Papers 98-16, The University of Western Australia, Department of Economics.
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