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A Bamboo Curtain: The Grim Australian Consequences of China Conflict

Author

Listed:
  • Rod Tyers

    (Business School, University of Western Australia and Centre for Applied Macroeconomic Analysis (CAMA), Australian National University)

  • Yixiao Zhou

    (Crawford School of Public Policy, Centre for Applied Macroeconomic Analysis (CAMA), Australian National University)

Abstract

The Australian economy has benefited from several decades of extraordinary Chinese expansion. Slowing growth has diminished these gains and geopolitics between China and the Western democracies has seen restricted commerce between China and Australia. We use a global economic model to assess the consequences were these tensions to restrict all inter-state commerce. Bilaterally, effects on Australia are large and proportionally larger than those on China. A “bamboo curtain”, restricting all commerce between Western democracies and other regions, would see Australia’s welfare per capita impaired most and the US least because of differences in trade dependence.

Suggested Citation

  • Rod Tyers & Yixiao Zhou, 2022. "A Bamboo Curtain: The Grim Australian Consequences of China Conflict," Economics Discussion / Working Papers 22-20, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:22-20
    Note: MD5 = cd0a1c85081e207a32986b88a68dd25f
    as

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    File URL: https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2022/DP%2022.20_Tyers%20and%20Zhou.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade and financial blockade; general equilibrium analysis; China; Australia;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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