TY - JOUR
T1 - The role of price and nonprice factors in predicting Australia's trade performance
AU - Sharma, Kishor
AU - Gunawardana, Premsiri J.
N1 - Imported on 12 Apr 2017 - DigiTool details were: month (773h) = June, 2012; Journal title (773t) = Applied Economics. ISSNs: 0003-6846;
PY - 2012/6
Y1 - 2012/6
N2 - This article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
AB - This article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
KW - Open access version available
KW - R and D
KW - Trade perfromance and FDI
U2 - 10.1080/00036846.2011.566193
DO - 10.1080/00036846.2011.566193
M3 - Article
VL - 44
SP - 2679
EP - 2686
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 21
ER -
