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Causal Factors of Australian Beef Exports

Harris, Patrick (2020): Causal Factors of Australian Beef Exports.

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Abstract

This study aims to understand how the macroeconomic and microeconomic indicators influence the export market of beef in Australia as well as the inclusion of a bivariate (0,1) dummy variable, accounting for extreme climate aberrations such as the ‘Millennium Drought’ and the 2017-current drought. Additionally, this study addressed whether there is a delayed effect of the independent variables on Australian beef exports and draw upon neoclassical economic growth theory to assess if this economic paradigm holds in the real world. The paper identified and evaluated the casual factors of Australian beef exports and found there to be a two-quarter lag in bank loans to agriculture and a one-quarter lag in RBA interest rate before their effect was statistically significant. The results explore the various implications that depend on the perspective of the stakeholder, whether that be the farmer or the government.

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