Belicka, Samuel (2013) Export supply models in selected trade deficit categories in Australia. Academy of Taiwan Business Management Review, 9 (2). pp. 32-55. ISSN 1813-0534

Abstract

This study introduces Export (X) supply models to analyse the determinants of the X supply from the theoretical and empirical perspectives from Australia tothe Rest of the World (RoW) and to eight selected Trade Deficit (TD) countries in four selected TD categories.The eight selected TD countries are China, France, Germany, Malaysia, Singapore, Thailand, United Kingdom, United States of America and four TD categories are Category 30 - Pharmaceutical Products; Category 84 - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof; Category 85 - Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Producers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles and Category 87 - Vehicles Other Than Railway or Tramway Rolling-Stock, and Parts and Accessories Thereof.The total of 33 X supply models are estimated side-by-side, based on both the monetary – Australian Dollar (AUD) and Quantity (QTY) values, giving in total 66 X supply models.This study finds that the most significant variables in the determination of the X supply are real income followed by relative prices, while the X supply is mostly responsive to changes in real income and mostly unresponsive to changes in real prices.Finally, this study also finds that inconclusive evidence exists that capacity utilization increases the X supply, while some evidence exists that the X supply has considerably increased in most of the categories since the introduction of the Goods and Service Tax (GST) in Australia

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