Economics

Grading the China-Australia Free Trade Agreement

December

In a 12 month period between December 2014 and December 2015, Australia clinched free trade agreements (FTAs) with Korea (KAFTA, enacted December 12 2014), Japan (JAEPA, enacted January 15 2015) and China (ChAFTA, enacted December 20 2015). A decade earlier, Australia had sealed an FTA with the US (AUSFTA, enacted January 1 2005). The combination means that Australia now has FTAs with its four biggest overseas customers.

Australia-China Annual Think Tank Economic Dialogue

December

Senior economists, policy specialists, business representatives and diplomats from Australia and China gathered in Beijing for the inaugural Australia-China Think Tank Annual Economic Dialogue, co-hosted by the Australia-China Relations Institute (ACRI) and the Chinese Academy of International Trade and Economic Cooperation (CAITEC).


Event Information
Date
December
Time
1:31 AM
Venue

The future of Australia's gas and LNG export market: An East Asian perspective

December

The Australian gas sector is at a dynamic stage due to Australia’s expected ascension to the world’s largest LNG exporter by next year. The increasing export of LNG, at a time of expiring long-term contracts in the domestic market, causes debate on the high price for domestic consumers. There is no quick solution to balancing various interests. Changes to existing commercial arrangements through legislation and state intervention may be a quick solution to mitigate domestic market price pressure, but maynot be in the nation’s long-term interest.


Event Information
Date
December
Time
1:31 AM
Venue

Is China really a threat to maritime trade?

December

By James Laurenceson

Note: This article appeared in East Asia Forum on June 4 2017.

Issues in formulating natural gas benchmark prices in China

December

The oil indexed pricing mechanisms for natural gas and LNG in Asian markets, although successful until the 1990s, are general considered to be no longer appropriate, with a weak relationship between oil and gas market fundamentals. Since the current oil-indexed pricing system fails to reflect the natural gas market fundamentals, several East Asian countries including China are considering formulating their own natural gas benchmark prices.

India cannot cushion the blow if China stumbles now

December

By James Laurenceson

This article appeared in The Australian Financial Review, April 19 2017.

Australia’s economic relationship with China and India: A snapshot

December

Between 2011–2015, China and India accounted for an average of 35.5 percent and 11.9 percent of world GDP growth, respectively.[1]

In 2015-16 China was the number one customer for Australia’s goods worth $75.3 billion, accounting for 30.9 percent of total Australian goods exports. India bought $9.7 billion and ranked fifth, accounting for four percent of the total.[2]

Economics and freedom of navigation in East Asia

December

Public calls for a more aggressive regional response to China’s pressing of its territorial claims in the South China Sea are typically couched in terms of the threat posed to freedom of navigation. Yet this invites an obvious question: If freedom of navigation, a vital interest for nearly every country in the region, is at risk, why has the regional response to China’s actions to date been so limited? This article argues that one compelling explanation lies in the economics of freedom of navigation in East Asia.

East Asia’s gas-market failure and distinctive economics: A case study of low oil prices

December

This paper proposes that the gas economics in East Asia (including Southeast Asia and Northeast Asia) is different from standard economics due to its exogenous oil-indexed pricing and certain region-specific and industry-specific factors. Based on a hypothesis of distinctive economics, this paper proposes an analytical framework that studies East Asian gas markets. This paper demonstrates this framework through a case study of the effects of a low oil prices.

Energy price, regulatory price distortion and economic growth: A case study of China

December

Energy prices are often distorted by government control, which is justified on the grounds that such control will help mitigate the negative impact of price volatility from oil imports, and thus positively affect the domestic economy. This paper shows in a two-sector growth model that regulatory price distortion can negatively affect the economy, and then, based on the model, empirically estimates the impact of the price distortion on output growth in China, using monthly, time series data from 2005M1 to 2012M12.