International Trade analysis - Australia

1. AUSTRALIAN INTERNATIONAL
TRADE: AN HISTORICAL
PERSPECTIVE
Student ID
University Name

2. CONTENTS
 Background
 Aim
 Findings
 Discussion
 Conclusion
 Reference

3. BACKGROUND
 Australia is one of the major exporter in the world for past decade. The
trade agreement between Korea and Australia was signed during late
1960s and significant trade improvements were also made to European
nations by Australia. This led to the drastic improvements of
international export and imports since 1960 to 2020
 This study will accomplish the objective by performing statistical
analysis using SPSS and excel to summarise the historical perspective of
international trade relations of Australia.

4. AIM
 The main goal of this study is to analyse and report on Australia’s
international trade from historical perspective

5. FINDINGS
exports and imports of
Australia
 Australia’s export strategy and free trade has
been rapidly changing during 1963 – 2019.
 Despite of such strategy, there was remarkable
increase in Australia’s export share during this
period.
 The export trends has shifted from major trade
partners from European nations to rapidly
growing Asian nations.
Graphical estimate of
Australian export share
during 1963 - 2020

6. TASK 1
Time series estimate of
trade export and import of
Australia
 The percentage change of the exports of
Australia from world trade value of
exports are mostly negative.
 The negative percentage change
illustrates the decrease of exports. The
reduced exports was observed during
2010 – 2011, 2013 – 2014 and 2018 –
2019 in Australia. (De Silva, 2014)

7. TASK 2 EXTENT OF TRADE INTEGRATION OF
AUSTRALIA TOWARDS WORLD ECONOMY
Trade Openness of Australia
 The degree of trade integration of Australia was
estimated by calculating the trade openness of Australia
using the historic data.
 The trade openness of Australia shows increases trend
line during 1963 to 2019. The trade openness was very
low during 1962 – 1969.
 The increase of trade openness was remarkably
increased during 1970.
 The trade openness was low during 2005 – 2008. Strong
open trade policies always paves way for the economic
growth for all nation
Trade openness of Australia
1963 - 2019

8. TRADE
OPENNESS
OF
AUSTRALIA
Year GDP Tradevalue_exp Tradevalue_imp Tradeopenness
1962 19889250000 106886270.43 112459191.52 0.011028343
1963 21507447643 129059282.45 136456246.86 0.012345283
1964 23764139321 145337783.53 154672427.77 0.012624493
1965 25936835032 161168981.97 170714186.32 0.012795824
1966 27268451114 177345170.13 188444784.46 0.013414402
1967 30397580916 187889519.18 199401877.50 0.012740862
1968 32665472057 216840655.27 225108413.06 0.013529548
1969 36628961810 238835759.79 247082944.87 0.01326597
1970 41271138985 280945758.44 293496178.51 0.013918732
1971 45149512823 306722803.96 322184579.46 0.013929439
1972 51967289720 367724934.20 385338522.28 0.014491105
1973 63737347854 510462066.92 532305574.15 0.016360386
1974 88831245394 770522354.23 786831405.86 0.017531599
1975 97171924075 795902152.57 820477491.64 0.016634225
1976 1.04921E+11 888613192.42 916025983.70 0.017199945
1977 1.10202E+11 1060468416.22 1036030181.46 0.019024163
1978 1.18339E+11 1131999143.92 1170976306.93 0.019460899
1979 1.34712E+11 1429415127.88 1479834356.83 0.021596063
1980 1.49776E+11 1729919664.83 1812918994.03 0.023654241
1981 1.76642E+11 1718455230.88 1795705287.61 0.01989422
1982 1.9377E+11 1560388031.70 1654953384.59 0.016593574
1983 1.7703E+11 1500723305.49 1633273411.49 0.017703154
1984 1.93242E+11 1620843577.04 1757817350.26 0.017484077
1985 1.80235E+11 1667628394.05 1799692777.16 0.019237728
1986 1.82037E+11 1806270681.23 1950863921.51 0.020639408
1987 1.89062E+11 2131648438.13 2284350592.74 0.023357452
1988 2.35658E+11 2447358636.48 2617358440.38 0.021491768
1989 2.99272E+11 2740451536.14 2917469200.41 0.01890561
1990 3.10781E+11 3123525999.58 3304373210.89 0.020683046
1991 3.25316E+11 3187816702.39 3379645194.58 0.020187952
1992 3.24884E+11 3453072100.93 3673393111.17 0.021935397
1993 3.11549E+11 3407975056.57 3592222715.02 0.022468987
1994 3.22214E+11 3874283416.57 4064801277.04 0.024639185
1995 3.67216E+11 4628073356.01 4865617133.14 0.025853125
1996 4.00303E+11 4925070750.93 5198024992.68 0.0252886
1997 4.34568E+11 5113944869.93 5411519551.23 0.024220523
1998 3.98899E+11 5078295037.37 5358763739.20 0.026164656
1999 3.88608E+11 5277849603.59 5631581929.12 0.028073085
2000 4.15223E+11 5999063379.05 6404056844.87 0.029871012

9. TASK 3 REVEALED COMPARATIVE ADVANTAGE
(RAC) OF TRADE EXPORTS
Products with Top Ten RAC
in 2000 in world
Product code Productvalue
732 526802688.6
729 404605933.3
331 347212648.8
714 338705461.1
719 290979350.9
724 241990155.1
931 237611506.6
841 185452418
332 158248479.7
722 151453687
RAC
 Revealed Comparative Advantage (RAC) is
defined as ratio of Australia’s total share on
export of goods and services and world’s
export of share on same goods and services.
 The values of RAC ranges from 0 to infinity.
 RAC value is observed to be increasing over
these ten years.
 The 2020 shows less figure due to the
pandemic situation that could have impacted
the economy of world.

10. TASK 3
Top Ten products based on
product code
Product code Exportvalue
732 20711353521
331 16430475663
729 13789171956
719 13241609514
332 11681278734
931 10518610668
714 9268127550
724 9033408086
541 8175830531

11. TASK 3
Top ten exports in Australia
during 2019 based on
product codes
Product 2019_Australia_export
281 66496414.63
931 47480173.81
321 44236989.36
11 11363052.57
283 8419944.02
541 4339774.348
331 4182898.943
684 2775695.637
682 2752708.974
861 2518909.022
 The above product codes was observed
to possess top ten products all over the
world exports during 2000 – 2020.
 The above three tables reveal that top
exported products during 2000 in all over
the world and 2019 in Australia has
remarkable difference.

12. TASK 3
RAC values of trade exports of
Australia 2000 – 2020
RAC year
0.02286957 2000
0.022006344 2001
0.023155673 2002
0.026892697 2003
0.032538606 2004
0.036968433 2005
0.042035642 2006
0.049565415 2007
0.057255356 2008
0.043818594 2009
0.052981332 2010
0.063595435 2011
0.063897676 2012
0.065259541 2013
0.06631324 2014
0.056489907 2015
0.055562746 2016
0.063302636 2017
0.069156528 2018
0.066082719 2019
0.02025191 2020

13. TASK 3
 The export value of the product code 732 was top of the ten in all
instances with high RAC value during 2000, total exports performed
during 2000 – 2020 in world and Australian exports during 2019.
 RAC value is observed to be increasing over these ten years

14. TASK 4 ANALYSIS OF GEOGRAPHICAL
TRADE PATTERNS
PartnerN
me
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Grand
Total
China 296762
5.869
316274
3.978
365492
2.303
463184
0.91
645337
5.975
101169
20.92
127451
71.23
160785
66.28
245686
24.79
307561
24.42
501382
25.79
693024
80.54
661977
31.26
795266
08.98
701086
45.12
496474
72.82
531066
35.59
755356
53.08
834053
77.99
100916
780.8
81302
1528.6
Japan 992266
4.978
979368
1.747
982352
9.282
103099
21.05
135605
18.62
182486
84.26
197583
28.53
216127
63.83
345437
63.33
246175
14.95
318715
03.08
408204
95.04
361621
21.29
312517
54.17
270751
48.24
201386
26.33
188441
98.31
336869
40.38
413556
62.35
394549
55.16
49285
2774.9
Unspecifi
ed
957770
9.643
919996
2.678
854506
2.666
802837
3.293
104731
94.81
112567
82.74
137194
58.35
141510
41.83
190007
94.39
129545
11.26
159840
64.75
273974
92.47
294495
47.04
307771
95.53
360578
97.54
277474
52.44
238701
00.18
445736
3.452
14854.
31
38978.
072
31270
1837.4
Korea,
Rep.
406243
6.265
392453
2.475
417139
1.574
397185
5.258
526384
2.585
697472
7.561
761545
7.46
973918
4.305
139286
82.17
109963
28.47
168389
57.63
225477
60.52
189210
24.45
175128
63.92
151049
08.31
114532
68.78
109893
03.72
153865
33.47
176277
12.41
173853
39.6
23441
6110.9
United
States
525528
1.205
526868
0.215
550684
1.951
529145
3.303
606935
3.758
608454
0.833
639916
6.954
692029
0.06
891952
1.779
626720
7.346
699613
0.434
778614
3.039
759681
1.674
743533
2.901
914963
5.987
912766
1.904
814423
8.149
879950
8.798
947056
1.34
100879
80.41
14657
6342
New
Zealand
355972
1.981
347266
3.015
403581
3.911
498678
7.021
603992
8.88
642240
1.484
623768
8.639
746792
1.624
735590
0.207
589970
4.775
678937
6.357
741920
0.786
728200
5.601
675612
1.992
690683
3.669
606075
9.685
634958
1.065
684411
8.212
714995
4.3
704028
5.711
12407
6768.9
India 103059
0.051
113491
3.325
116346
0.415
139001
5.733
182514
6.463
293673
4.297
361535
8.119
408351
1.45
696286
6.798
576629
7.14
991937
6.868
112016
64.64
918680
3.684
713043
2.225
703703
7.6
656506
7.195
714291
7.44
114338
05.39
118395
31.24
951651
1.646
12088
2041.7
Other
Asia, nes
272680
1.38
234755
9.663
218894
6.228
201061
3.373
268947
2.724
365663
2.283
420609
9.102
464732
8.078
612671
2.967
442347
0.862
701131
2.15
888468
1.089
777400
3.749
669794
8.735
607825
6.453
462115
3.886
515942
9.321
662034
5.612
781295
3.621
883842
0.38
10452
2141.7
Singapor
e
211699
8.581
210270
6.202
216360
6.958
200788
4.301
213424
7.969
268940
6.345
306707
9.59
295632
3.038
426327
9.226
332809
1.366
365075
3.748
520641
9.78
566567
0.063
435717
6.932
474045
3.488
330228
2.946
303050
3.103
437934
3.713
646363
9.929
714074
5.586
74766
612.86
Indonesi 122269
5.857
125130
7.249
125111
4.18
140383
4.817
166717
6.43
210033
5.668
240731
4.339
247722
7.294
262487
2.504
256896
8.652
342229
7.523
493159
0.967
450158
2.041
415872
3.097
433941
1.708
356230
4.23
386715
9.948
509918
7.276
479636
0.17
409933
0.291
61752
794.24

15.  The estimated top ten nations of export partners for Australia during
2000 – 2019 are China, Japan, Korea, USA, New Zealand, India, Other
Asian nations, Singapore, Indonesia, Malaysia and unspecified nation

16. DISCUSSION
 The study observed that Australia possess significant share on world’s export and
imports during 1960 till 2020. The increase trade openness of Australia during 1960
to 2020 is due to the free trade agreement made by Australia.
 Most of the products exported by mining and technology products. Australia has
built up a serious edge in a scope of labor and products, from high-innovation
items, for example, clinical and logical hardware through to excellent wine and
prepared food. Significant administrations sends out incorporate schooling and the
travel industry, and proficient and monetary administrations.
 Administrations by Australian organizations working abroad give a significant
commitment to Australia's economy. Australia keeps on pushing ahead with
exchange progression singularly, respectively and multilaterally.

17. DISCUSSION
 This will reinforce worldwide financial joint effort, diminish the dangers confronting the
worldwide economy, and support development. Australia assumes a functioning part in
the WTO, APEC, the G20 and other exchange related discussions.
 Australia has additionally arranged two-sided and local economic accords with a wide
scope of nations to reinforce exchange and venture streams.
 Around 70% of Australia's two-way labor and products exchange is with nations with
whom we have either an in-power or a closed international alliance, in light of 2018
exchange information. 73% exchange of Australia is with APEC countries. (DFA, 2021)

18. CONCLUSION
 The main aim of the study is to quantitatively estimate and compare the
international trade practices of Australia.
 The data was gathered from secondary web sources such as data world etc.
 The study identified that Australia contribute significant amount of world’s total
export rate.
 The RAC level of products exported by Australia is less than 1.
 The product code 732 was significantly exported at high rates since 2000 by
Australia. China, Japan, Korea, USA, New Zealand, India, Other Asian nations,
Singapore, Indonesia, Malaysia and unspecified nation are the top ten export
partners of Australia during 2000 to 2019.
 The historical perspective analysis using time series data revealed that Australia’s
export aggregate continue to increase since 1963 to 2019.

19. REFERENCES
 DFAT. (2020). Trade through time, Available online: DFAT – Trade
Through Time
 DFA. (2021). Australian Trade, available online: Trade | Australian
Government Department of Foreign Affairs and Trade (dfat.gov.au)
 RBA. (2020). Trade patterns of Australia on economy.
 De Silva (2014). Export Trends and Free Trade of Australia, Available
online: オーストラリア研究紀要 ４０号（Ｐ）☆／５．Ｓｉｌｖｅｒ
(otemon.ac.jp)

20. THANK YOU