Empirical work on intra-industry trade (IIT) is almost 30 years old. From the earliest analyses of IIT, the phenomenon has been associated with Regional Trading Agreements (RTAs). An important motivation for this research is associated with the issue of adjustment costs; if most of the growth in...

Intra-industry trade (IIT) related concepts have often been used as indicators of the extent to which trade growth can be accommodated without factor market disruption. The most commonly used indicators have been movements in the Grubel-Lloyd (GL) index. However, GL-based indicators are...

This paper investigates the relationship between manufactured import flows to Australia, and relative prices and domestic economic activity net of cyclical demand effects over the period 1981Q3 to 1991Q2. This is done through the estimation of import demand functions for total manufactured...

The ORANI-F model of the Australian economy is closely based on the original ORANI model (Dixon, Parmenter, Sutton and Vincent, 1982), which has been used for many policy analyses in Australia. However, as well as having a more recent database, ORANI-F is a forecasting model: it includes some...

GEMPACK is a suite of general-purpose economic modelling software especially suitable for general and partial equilibrium models. It can handle a wide range of economic behaviour and also contains a versatile method for solving intertemporal models. GEMPACK provides software for calculating...

Empirical work on intra-industry trade (IIT) is almost 30 years old. Initial research sought to identify if IIT was a significant share of total trade (TT). The Grubel-Lloyd (GL) index was widely used for this purpose, since it provides a relatively reliable measure of the importance of IIT at...

The past few years have seen increasing use of multiregional and intertemporal (that is, forward-looking) applied general equilibrium (AGE) models. These models share the characteristic of rapidly expanding dimensions. Because multilateral trade models increase in size with the square of the...

At least since the mid-1970s, the emphasis in applied demand analysis has been on a flexible specification of substitution effects. Recent theoretical work by Cooper and McLaren (1992a, 1992b and 1996) and Cooper, McLaren and Parameswaran (1994) has put more emphasis on effectively globally...

Over the last twenty years, applied general equilibrium models (AGEMs) have provided useful insights on the likely effects of disturbances in one part of the economy on activity in other parts; e.g. the effects of changes in manufacturing protection on exports of mineral products. On the other...

Much of the growth in trade among the industrialised countries, and more recently among countries in the Asia-Pacific region, has taken the form of intra-industry trade (IIT). Australia has historically had one of the lowest shares of IIT among OECD countries. This paper examines how Australia's...