An empirical, small scale 'Traded-Nontraded goods' model for New Zealand selim

Cagatay S., Lattimore R.

ECONOMIC MODELLING, vol.21, no.6, pp.991-998, 2004 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 21 Issue: 6
  • Publication Date: 2004
  • Doi Number: 10.1016/j.econmod.2003.12.001
  • Journal Indexes: Social Sciences Citation Index, Scopus
  • Page Numbers: pp.991-998


In this paper, an empirical model of the traded-nontraded goods model was built in order to examine the effect of various policy variables on the real exchange rate and resulting impacts on the variation in industrial supply, demand and employment levels. This framework was also built to search and simulate alternative policy settings to 1984 economic reforms of New Zealand, that would possibly decrease the short-term adjustment costs of 1984 reforms. It was found that, particularly the output contraction and employment loss in exportable industries, would have been lower if the liberalization in the exportable and importable industries had followed similar timing. (C) 2004 Elsevier B.V. All rights reserved.