Abstract
Paper prepared for the Office of EPAC (Economic Planning Advisory Council).
Executive Summary:
This report extends a recent major study on the effects of NAFTA published by the United States Congressional Budget Office, using the same model (MSG2) to examine the macroeconomic impacts of NAFTA on the Australian economy. One useful strength of the multi-country MSG2 model for this exercise is that it incorporates international flows of financial and real capital as well as goods.
This report finds that although the direct economic impact of NAFTA on Australia is relatively small, this impact is larger than standard static trade studies imply. The results also show a distinct difference over time. In the short run Australia is negatively affected by NAFTA, while over the medium to longer term Australia benefits from NAFTA raising global income...
Executive Summary:
This report extends a recent major study on the effects of NAFTA published by the United States Congressional Budget Office, using the same model (MSG2) to examine the macroeconomic impacts of NAFTA on the Australian economy. One useful strength of the multi-country MSG2 model for this exercise is that it incorporates international flows of financial and real capital as well as goods.
This report finds that although the direct economic impact of NAFTA on Australia is relatively small, this impact is larger than standard static trade studies imply. The results also show a distinct difference over time. In the short run Australia is negatively affected by NAFTA, while over the medium to longer term Australia benefits from NAFTA raising global income...
Original language | English |
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Title of host publication | Regional Trading Agreements |
Place of Publication | Canberra, Australia |
Publisher | Commonwealth of Australia |
Chapter | 2 |
Pages | 33-60 |
ISBN (Print) | 0644 35171 3, 9780644351713 |
Publication status | Published - Aug 1994 |
Publication series
Name | Background Paper |
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Publisher | Office of the Economic Planning Advisory Council, Commonwealth of Australia |
Number | 40 |
ISSN (Print) | 1036-1723 |