China's economic rise and its implications for logistics: the Australian Case

China's economic rise has had a significant impact on the global economy in terms of trade patterns and orientation. Much has been done to quantify the impact of China's economic rise on international trade, but very little has been done to assess its implications for logistics. In this paper, we examine the effects of China's continued economic rise on the Australian logistics sector. Unlike previous work that used partial equilibrium models, we use a computable general equilibrium (CGE) model. This allows us to capture the direct and indirect ramifications of trade and other economic developments associated with China's economic rise. The results are mixed between sub-sectors, but overall the Australian logistics sector would potentially benefit significantly from China's continued economic rise. However, these potential benefits will hinge partly on the Australian logistics sector's ability to respond to these opportunities. © 2009 Elsevier Ltd. All rights reserved.