Priority setting in international trade – application of multiple criteria decision analysis for Australian-Indonesia trade in the health sector.

Bratanova, Alexandra and Cameron, Alicia and Thavat, Maylee and Fyfield, Amelia and Hajkowicz, Stefan (2023): Priority setting in international trade – application of multiple criteria decision analysis for Australian-Indonesia trade in the health sector.

Abstract

We demonstrate a use case of Multiple Criteria Decision Analysis (MCDA) in collaboration with industry stakeholders in forums as a way in which governments can undertake a 'soft' industry policy in international trade given the complex and changing global environment, and facilitate, rather than steer, the prioritisation of sector-specific facilitation. International trade is increasingly a balancing act with multiple competing objectives including security with open competition, economic growth with inclusion, and social and environmental protection. Post-pandemic, government efforts to stimulate export-led recovery and refine trade priorities within the rule bound by members of the World Trade Organisation are set to ramp up. To assist governments, guide their limited resources we advocate for the use of MCDA to assist with greater trade policy transparency and enable strategic decision making between multiple stakeholders While MCDA is often used in areas such as healthcare and environmental resourcing, it is not widely used in international trade. We demonstrate the use of MCDA to determine potential trade priorities in the healthcare sector under the Indonesia-Australia Comprehensive Economic Partnership Agreement. MCDA was applied in real-time during online workshops hosted by Australia's Department of Foreign Affairs and Trade with 38 industry stakeholders. The pilot determined clear priorities for trade promotion in a transparent process. These are discussed along with the potential to further develop and apply MCDA and the limitations of the analysis for effective use in international trade.

• Item Type: MPRA Paper
• Language: English
• Keywords: multiple criteria decision analysis; international trade; Australia; Indonesia; healthcare
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; I - Health, Education, and Welfare > I1 - Health > I10 - General

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