Premium
Buying Australian
Author(s) -
HORRIDGE MARK,
PARMENTER BRIAN R.,
WARR PETER G.
Publication year - 1987
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1987.tb00654.x
Subject(s) - economics , international economics , balance of trade , balance (ability) , offset (computer science) , production (economics) , monetary economics , international trade , macroeconomics , medicine , computer science , physical medicine and rehabilitation , programming language
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 .