Improving Australia's trade balance: A case study of agro‐forest and fish products

The impact of the exchange rate (ER) on trade balance (TB) has been discussed for many years. However, issue not in sufficient depth, especially relation to TB agricultural products. This paper will gauge this Australia, which much potential agro-based world market. We have applied Bahmani-Oskooee and Hosny's approach linear autoregressive distributed lag model estimate Marshall–Lerner condition (MLC) regarding Australian agro-forest fish (AFF) products with its five major partner countries. Quarterly data be used period 1988Q1–2020Q4. Our findings support MLC case share AFF trade. implication is that if market force depreciates ER, country's improve long-run.