Discussion paper

New Zealand’s place in the world

Myths and realities
Publisher
Economic forecasting Free trade Economic growth New Zealand
Resources
Attachment Size
New Zealand’s place in the world 588.31 KB
Description

New Zealand’s place in the world – including flows in trade, people, capital, and ideas – continues to change. This discussion paper highlights how some of the long-standing memes, which have dominated the local discourse no longer apply in a post-COVID world. In particular, New Zealand’s openness to external trade and foreign investment, and the role of migration in driving population growth have all changed.

Key findings:

  • Openness – New Zealand is much less open to trade in goods and services than other small, developed economies – geographic distance results in overall openness (exports and imports combined relative to GDP) at 50 percent, which is low compared to 80 percent for a sample of small, advanced European economies.
  • Services – The economy is becoming increasingly a services-driven economy – with direct exports of services (tourism in particular) doubling over the last 20 years while indirect services embodied in other exports make up another 27 percent.
  • Agriculture – The shares of employment and economic activity in this sector are small but agricultural exports of raw and processed material still dominate overall good exports with a 90 percent share
Publication Details
Access Rights Type:
open