NSU Research Contributions
Title : A regional perspective on tariffs: The Western Australian experience.
Authors : Helal Ahammad, Robert A. Greig
Abstract : This paper estimates the costs of protection for the economy of Western Australian (WA). Protection policies impose a major burden on an economy limiting its expansion and, particularly, the expansion of its export sectors. Using the Clements-Sjaastad methodology, which looks at the transfers of the burden of protection in terms of taxes and subsidies, the paper finds that on balance WA is a substantial net loser due to the Australian protectionist policy. The paper uses a computable general equilibrium modelling framework to estimate the effects on the size and structure of the WA economy of the full implementation of the reductions in manufacturing tariffs proposed in the 1991 Industrial Policy Statement of the Australian Labor Government. Estimates are made for the sectoral impacts of the tariff cuts. As expected, the simulation results show that the WA minerals and services sectors would gain the most from the reduction in tariffs. The paper also estimated that for each job supported in the protected WA manufacturing sector, the WA economy loses about 20 potential new jobs elsewhere and, in terms of lost Gross State Product, each protected job costs the economy about $1 million per annum.,
| Journal : Australasian Journal of Regional Studies | Volume : 6 | Year : 2000 | Issue : 1 |
| Pages : 67–94 | City : | Edition : | Editors : |
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