Abstract
The structure of exports from Australia to China reveals the dominance of primary products with the structure of imports from this country reflecting the over-reliance on manufacturing goods. This has restrained and led to fluctuations in the balance of trade surplus in Australia thereby leading to lower than otherwise and more volatile output and employment growth. The pattern of trade between Australia and China is representative of trade between Australia and the rest of the world thereby magnifying these adverse effects. Strategic trade policy has the potential to alleviate these negative effects on output and employment growth in Australia.
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