Commission and the Australia Bureau of Agricultural and Resource Economics, or in economic
consulting companies staffed by former senior public servants, leaving academics
freer to concentrate on research and on teaching the next generation of economists.
Without implicating him, thanks are due to Richard Snape for helpful comments on an earlier
In 1999 Australia was ranked twenty-sixth, according to the World Bank Atlas method of
measuring GNP per capita (or twentieth using the World Bank's purchasing power parity
method) – not counting the several rich countries with fewer than 1 million people (World
Earlier literature surveys can be found in Corden (1968) for writings up to the mid-1960s
and, for the next decade, in Gruen (1978, 1983) and especially Lloyd (1978), Edwards and
Watson (1978) and Smith (1983).
In fact the increased demand for non-tradables (and other products) would begin as soon as
expectations about future income prospects rose, which could be well before the mining
export boom shows up in the trade statistics in the case where the exports are preceded by
FDI inflows for investments with a long lead-time (Corden 1982).
ERAs have been estimated for all Australian manufacturing industries at the two-digit, threedigit
and four-digit levels of disaggregation each year since 1968–69, for all rural industries
since 1970–71, and occasionally also for mining industries (whose ERAs are close to or below
zero). Details can be freely downloaded from the website of Australia's Productivity Commission
.The commission also estimates and publishes the consumer-tax
equivalent of industry-assistance policy measures including the tariff.The availability of such
comprehensive estimates of ERAs has made it easier to use the economics of politics to explain
the intrasectoral pattern of assistance to industries, as in Anderson (1980).
That transparency agency had an increasingly influential role within the government and in
the wider community from the late 1960s until the 1980s (Glezer 1982, Warhurst 1982,
Rattigan 1986), and it remains very influential today through publishing rational economic
analyses on an ever-wider range of microeconomic policy issues.
See Arndt (1965), Snape (1984) and Anderson (1999). This and many other aspects of the
history of Australia's trade policy are detailed in Crawford (1968) and Snape, Gropp and Luttrell
(1998). A political scientist's perspective on Australia's engagement with the GATT/WTO
is available in Capling (2001).
Anderson, K. 1980.The political market for government assistance to Australian manufacturing
industries. Economic Record 56(153):132–44.
Anderson, K. 1987. 'Tariffs and the manufacturing sector' in The Australian Economy in the Long Run. Edited by
R. Maddock and I. McLean. Melbourne: Cambridge University Press.
Anderson, K. 1995. 'Australia's changing trade pattern and growth performance' in Australia's Trade Policies.
Edited by R. Pomfret. Melbourne: Oxford University Press.
Anderson, K. 1999.The WTO agenda for the new millennium. Economic Record 75(228):77–88.
Anderson, K. 2001. 'Australia in the international economy' in Reshaping Australia's Economy: Growth with
Equity and Sustainability. Edited by J. Nieuwenhuysen, P.J. Lloyd and M. Mead. Melbourne:
Cambridge University Press.