Import dependence in the Australian economy
Abstract
During the last two decades or so, the relationship between foreign trade and economic development
has received considerable attention in he context of the development policy in the
primary-producing countries, on the one hand , and in the context of the "dollar shortage", on the
other.
Facing an unfavourable long term trend of the terms of trade of primary products, relatively wide
fluctuations in the value of primary product exports, and a rise of agricultural protectionism in
industrial countries, the primary-producing countries have attempted to divert their production
patterns away from traditional lines and to substitute domestic production of industrial products
for imports. On the other hand industrial countries have
paid attention to the trade development relationship not
only because of their trade with primary-producing countries but also because of possible effects
of technological progress in some industrial countries (particularly the United States of America) on the other industrial countries (particularly European countries).