On Australia’s foreign economic relations

Kümpel, Arndt (2011): On Australia’s foreign economic relations.

Abstract

This paper analyses the current state and trends in Australia’s foreign economic relations with respect to the economic rise of Asia. Starting from an evolutionary view of Australia’s integration into the global economy, the consequences of the rise in the terms of trade are analysed. Following on from that, an analysis of selected aggregated indicators of Australia’s foreign trade and investment is carried out. Finally, the outlook emphasizes the promising perspective as well as the challenges.

• Item Type: MPRA Paper
• Language: English
• Keywords: Dutch disease, Australian Terms of trade, regional economics, international economics, growth poles, Australian production factor endowment
• Subjects: N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries > N57 - Africa ; Oceania; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

References

The proposed Australian Mining Resource Rent Tax (former Resource Superprofit Tax) hints to a sharp battle for future mining profit distribution between the public and the corporate interests with a pending final agreement. However, it appears highly reasonable to secure the priority of public interest even in free competitive markets and tax regimes. For details see: http://www.futuretax.gov.au

Swan, W., Wong, P. (2011): Budget strategy and outlook, budget paper No.1, 2011-12, accessed at: http://www.aph.gov.au/budget/2011-12/content/download/bp1_prelims.pdf (20.6.2011)

Forbes, V. (2011): Value adding in Australia – the beginning of the end?, in: On Line opinion, accessed at: http://www.onlineopinion.com.au/view.asp?article=12053 (21.06.2011)

The Dutch Disease, in: The Economist, November 26, 1977, pp. 82

Atkinson, D.J. (2009): Australian Prime Ministers: Triumph over Adversity – Bob Hawke and the Floating of the Australian Dollar, in: National Historical Challenge 2009, p.2, accessed at: http://moadoph.gov.au/research/national-history-challenge/docs/2009/dale-atkinson-essay.pdf (22.06.2011)

McKissack, A. et. al. (2008): Structural effects of a sustained rise in terms of trade. p.16, accessed at: http://www.treasury.gov.au/documents/1400/PDF/Structural_Effects_Terms_of_Trade.pdf (23.06.2011)

Natraj, G.V. (2010): Australia’s Real Exchange Rate Appreciation: Determinants and Implications for the Economy, accessed at: http://www.rba.gov.au/econ-compet/2010/pdf/first-prize.pdf (24.06.2011)

McKissack, A. et. al. (2008), p.2

Richardson, D. (2009): The benefits of the mining boom – where did they go?, accessed at: http://www.ccag.org.au/images/stories/pdfs/mining_boom_final.pdf (24.06.2011)

McKissack, A. et. al. (2008), p. ii

Stevens, G. (2011): Cross-currents in the Global Economy, in: Reserve bank of Australia 2010, p.4, accessed at: http://www.rba.gov.au/publications/bulletin/2010/dec/pdf/bu-1210-10.pdf (21.06.2011)

Swan, W., Tanner, L. (2010): Budget strategy and outlook, budget paper No.1, 2010-11, p.4-11, accessed at: http://www.aph.gov.au/budget/2010-11/content/bp1/download/bp1.pdf (20.6.2011)

PwC (2011): Mine 2011 – The game has changed. Review of global trends in the mining industry. Accessed at: http://www.pwc.com/en_GX/gx/mining/pdf/mine-2011-game-has-changed.pdf (25.06.2011)

Swanepeol, E. (2010): Australia's investment in African resources tops A$ 20 bn, accessed at: http://www.miningweekly.com/article/australias-investment-in-african-resources-tops-a20bn-2010-09-01 (24.06.2011)

Ibd. This does not only apply to commodities. The rejection of the 8,4 billion AUD take over bid in 2010 from Singapore Exchange Ltd. For Australian competitor ASX Ltd. by Australian treasurer Wayne Swan and several Australian lawmakers indicate that this concern stretches all across the entire economy.

Ibd., pp.18

Catley, B. (1996): Globalising Australian Capitalism. Cambridge, New York, Melbourne, Cambridge University Press, pp.197

Catley, B. (1996), p.198

Ibd.

For an overview of the Australian foreign and trade policies see: Australian Bureau of Statistics (2010): Yearbook Australia 2009-10, No.91, Canberra

Australian Department of Foreign Affairs and Trade (2009), Australia's trade performance 1988-89 to 2008-09, accessed at: http://www.dfat.gov.au/publications/stats-pubs/australias-trade-performance-1988-89-to-2008-09.pdf (24.06.2011)

OECD (1994): Economic Surveys, Australia, Paris; Australian Department of Foreign Affairs and Trade (1992): Australia and Northeast Asia in the 1990s: Accelerating Change, Canberra

After the trade and investment liberalization period under the Hawke Government from 1983 the share of Australian foreign trade (exports plus imports) rose dynamically, with growth accelerating in the 1990’s. The process of trade and investment promotion was considerably institutionally strengthened with the establishment of the Australian Trading Commission (Austrade) under the Australian Commission Act 1985.

Australian Department of Foreign Affairs and Trade (2011): Australia's trade in goods and services by top 10 partners 2010, accessed at: http://www.dfat.gov.au/publications/tgs/partners-top10-2010.pdf (24.06.2011)

Ibd.

Ibd.

Australian Department of Foreign Affairs and Trade (2011): Australia's goods and services by top 25 exports 2010, accessed at: http://www.dfat.gov.au/publications/tgs/exports-top25-2010.pdf (24.06.2011)

Australian Department of Foreign Affairs and Trade (2011): Australia's goods and services by top 25 imports 2010, accessed at: http://www.dfat.gov.au/publications/tgs/imports-top25-2010.pdf (24.06.2011)

Australian Department of Foreign Affairs and Trade (2009): Australia’s trade performance 1988-89 to 2008-09, accessed at: http://www.dfat.gov.au/publications/stats-pubs/australias-trade-performance-1988-89-to-2008-09.pdf (24.06.2011)

Ibd.

Roberts, G. (2010): Australia, India sign education deal. Accessed at: http://news.smh.com.au/breaking-news-national/australia-india-sign-education-deal-20100408-ru4p.html (25.06.2011)