Some aspects of trade between Australia and Pacific Island countries

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Australia and Pacific Island countries (PICs) have maintained an ongoing trade and economic relationship for several years. The determinants of trade between Australia and PICs are examined using a gravity model by utilising time-series cross-country data for the period 1981 to 2005. The empirical findings indicate that imports by PIC from Australia are significantly determined by PICs' population and their per capita GDP. The results also suggest that PICs' exports are significantly determined by PICs and Australia's population, PICs' infrastructure (telecommunications) and the distance to Australia. Consistent with the findings of other studies using the gravity model, distance is found to be a friction to PICs' exports to Australia. While this study identifies factors influencing PICs' trade with Australia, a more substantial issue for the governments and trade policy makers in PICs is to look into the generally disappointing long-term trade performance. From a policy perspective, PICs would need to seriously look at increasing their export potential.

Original languageEnglish
Pages (from-to)89-106
Number of pages18
JournalWorld Economy
Volume33
Issue number1
DOIs
Publication statusPublished - Jan 2010

Fingerprint

trade policy
Pacific Islands
government policy
telecommunication
import
time series
determinants
infrastructure
performance
economics
Gravity model
Politicians
Per capita GDP
Influencing factors
Telecommunications
Trade policy
Friction
Economics
Government policy
Import

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Some aspects of trade between Australia and Pacific Island countries. / Gani, Azmat.

In: World Economy, Vol. 33, No. 1, 01.2010, p. 89-106.

Research output: Contribution to journalArticle

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