Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/66109 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
NZ Trade Consortium Working Paper No. 27
Publisher: 
New Zealand Institute of Economic Research (NZIER), Wellington
Abstract: 
Economic relations between Australia and New Zealand comprise trade in goods, services, labour and capital. Table 1 lists the dependence of Australia on New Zealand markets, and the dependence of New Zealand on Australian markets, in the simple sense of the magnitude of imports and exports of goods and services and factor flows with the other country. To make these flows comparable, each flow between Australia and New Zealand is expressed as a share of the total corresponding flow between the country and the Rest of the World. As is well known, this table shows that all of these shares are considerably higher for New Zealand than for Australia. That is, the New Zealand economy is more dependent on the Australian economy than the reverse. Looking at the comparisons within each column, we find that both the Australian and the New Zealand economies are more dependent on each other for factor supplies than they are for trade in goods and services. In particular, two flows really stand out as making Australia and New Zealand dependent upon each other. These are New Zealand supplies of labour to the Australian labour markets and trans-Tasman foreign direct investment. Consequently, while the usual focus on economic relations is on trade in goods and services, I shall focus on trade in factors.
Document Type: 
Working Paper

Files in This Item:
File
Size
124.93 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.