Abstract

This study introduces Net Export (NX) models to examine the determinants of the trade flows between Australia and eight selected trading partner (TP) countries (China, France, Germany, Malaysia, Singapore, Thailand, United Kingdom, United States of America) in four selected Trade Deficit (TD) categories (Pharmaceutical Products; Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Electrical Machinery and Equipment; Sound Recorders and Producers, and Vehicles Other Than Railway or Tramway Rolling-Stock). A total of 29 NX models are estimated, which are based on both the monetary and Quantity (QTY) values. Findings in this study suggest that macroeconomic variables such as money supply, interest rates and savings rates have no-significant effect in the determination of the NX levels in the selected categories. This highlights that monetary policy cannot influence the NX levels in the selected TD categories in Australia. This study also identifies some policy implications which arise from this paper.

Share

COinS
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.