ECON1604 Assignment on Quantitative Analysis

ECON1604 QUANTITATIVE ANALYSIS

CONTENTS
INTRODUCTION......................................................................................................................3
SIGNIFICANCE OF AGRICULTURE, FISHERY AND FORESTRY INDUSTRY IN
AUSTRALIAN ECONOMY.....................................................................................................3
CHALLENGES BEING FACED BY AGRICULTURE, FISHERY AND FORESTRY
INDUSTRY IN AUSTRALIAN ECONOMY...........................................................................3
CALCULATIONS OF THE TYPE I MULTIPLIERS..............................................................4
IMPACT OF THE BUDGET CUT............................................................................................5
IMPACT OF THE CLIMATE CHANGE.................................................................................5
IMPACT OF THE CLIMATE CHANGE AUSTRALIA’S EXPORT......................................6
LITERATURE REVIEW...........................................................................................................6
RECOMMENDATIONS...........................................................................................................8
CONCLUSION..........................................................................................................................8
REFERENCE.............................................................................................................................9
APPENDIX..............................................................................................................................10

Introduction
Economy of Australia is has been performing impressive since the last two decade. The credit
for the exceptional performance of the economy goes to the different sectors that support the
economy. These sectors of the Australian economy is also influenced by different other
factors including the climate change and the performance of the other countries of the world.
The objective of the study is to find out the contribution of agriculture, fishery and forestry
industry in the Australian economy. The paper also examines the impacts of the climate
change in the Australian economy through direct and indirect challenges.
Significance of agriculture, fishery and forestry industry in Australian economy
Australia has been a major producer and exporter of many agricultural products such as rice,
sugar, cotton grapes and many more. Beilin et al. (2019) stated that 67% of the total
agricultural product of the country is exported to the trade partners and hence performance of
their economy has a huge role to play in stabilising the Australian economy. This sector also
employs more than 450000 workers providing a lot of support to the national workforce of
Australia as well. The products of this sector are also used in the other sector such as food
processing sector and hence agriculture industry is important for Australian economy.
Fisheries also play a big role for the overall economic growth rate of the country. Although
the production of this industry is mostly exported to the foreign countries a part of the
produce goes to production in the other sector as an input too. Australia is the major exporter
of fishery product in the Asia pacific area and hence economic performance of this region
significantly control the economy of the Australia. Forestry is another industry of the
economy that helps the economy to growth impressively. According to the data of 2018, the
forestry industry contributed $3 billion dollar to the national product of the country
(Longden, 2019). There are some tress in the forest of Australia which is unique to this
continent and has a huge demand in the world market. Australia makes a huge profit from
this uniqueness and the demand.
Challenges being faced by agriculture, fishery and forestry industry in Australian
economy
There are a number of challenges which is being faced by these industries of Australia and it
is also affecting the productivity level of the economy as well. For example, unavailability of
the clean water due to the water pollution is one of the serious challenges for the growth of

the agriculture sector of the country. Banwell et al. (2018) stated that, contaminated water
supply to the soil is not only reducing the quality of the soil it also leading to a deteriorating
quality of the products. Apart from that, the fishery industry is also facing challenges from
the side of the illegal agents who are fishing without any authority. Gasparrini and Vicedo-
Cabrera (2019) stated that a sudden decrease in the production of marine products due to the
illegal operation can snatch its competitive edge over the other rivals of the market as well.
Climate change is a problem that is affecting the forestry sector of the country. Recently the
country saw a wildfire that killed a number of animals in the wild that can further disrupt the
ecosystem of the forest.
Calculations of the type I multipliers
i) The calculations for the type I matrices have been shown in the appendix