Buying Australian |
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| Authors: | MARK HORRIDGE BRIAN R PARMENTER PETER G WARR |
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| Institution: | University of Melbourne, Parkville, Victoria 3052;Australian National University, Canberra, ACT 2600 |
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| Abstract: | We investigate the short-run effects on the trade balance and on aggregate employment of persuading domestic residents to switch expenditure from imports to domestic commodities. Simulations with ORANI indicate that the favourable initial effects of such switches may be offset significantly by induced demand for imports as domestic production expands and by the inflationary effects of domestic expansion which erode the international competitiveness of exports and import-competing products . |
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