OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Trade, Employment and Structural Change

The Australian Experience You or your institution have access to this content

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Author(s):
Greg Thompson1, Tim Murray1, Patrick Jomini1
Author Affiliations
  • 1: Australian Productivity Commission, Australia

Publication Date
29 Mar 2012
Bibliographic information
No.:
137
Pages
36
DOI
10.1787/5k9csf8jftbt-en

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International trade produces income gains across the world by facilitating an efficient allocation of production among trading countries. However, increased trade exposure also creates some challenges, and there are adjustment costs associated with changing trade patterns. Effective complementary policies, by promoting flexibility and adaptation within economies, can reduce adjustment costs associated with increased trade, and therefore ensure the benefits are maximised. This paper highlights these issues with reference to recent experience in Australia. Computable General Equilibrium modelling shows how the recent improvement in Australia‘s terms of trade is likely to have increased incomes and that the magnitude of these gains is directly linked to the degree of flexibility of the economy.
Keywords:
growth, trade, wages, employment
JEL Classification:
  • F16: International Economics / Trade / Trade and Labor Market Interactions