Intra-industry trade and trade intensities: Evidence from New Zealand

This study analyses the development of intra-industry and inter industry trade between New Zealand, Australia, and the selected Asia-Pacific nations during the period 1990 to 2000. The study adapts mainly two approaches to examine these developments. First, an historical analysis of New Zealand trading patterns is presented. For this purpose, intra-industry trade development is examined. The Grubel-Lloyd and Aquino indices are used to calculate the intensity of intra- industry trade at the 3-digit SITC levels to determine the relative importance of intra-industry trade as opposed to inter-industry trade. IIT has been estimated across industries and for selected trading partners. A time series approach is used to estimate any trend in the ratio of intra industry trade to total trade in relation to Australia. Secondly, the paper examines the strength of trade relations between New Zealand and the other countries. For this purpose the intensity of trade index has been estimated for bilateral trade flows between these nations. These analyses are examined to consider how trade has changed in this period of trade liberalisation. The results show that intra-industry trade has increased between New Zealand and Australia. The results also suggest that bilateral trade flows between New Zealand, Australia and other countries has become more intense indicating trading relations are strengthening. In some cases bilateral trade flows have decreased. The results also suggest that the removal of trade barriers through bilateral and multilateral negotiations has positive impacts on intra-industry trade and the intensity of trade of these economies

ASEAN-New Zealand trade relations and trade potential

This paper explores trade development by the Association of South East Asian Nations (ASEAN) with a particular reference to New Zealand and in the context of free trade agreements and partnerships. It describes the history of ASEAN, its trade composition, diversity and intensity. The paper includes an analysis of Kojima indices of trade intensities, the trade potential index and a gravity trade model using panel data and multivariate analysis. Hypotheses derived from trade theories are then tested to identify the key determinants of trade and the implications for policy. Overall, the study shows that economic integration has had a positive impact on ASEAN nations and with New Zealand and with ongoing potential

New Zealand kiwifruit export performance: Market analysis and revealed comparative advantage

This paper investigates the spectacular and successful growth of New Zealand kiwifruit production and exports between 1984 and 2009. It explores the evolution, current status, future prospects and challenges facing the industry where more than 90 percent of the output is exported. The study includes a statistical analysis of the production and consumption of kiwifruit in New Zealand and other countries, with a particular focus on Asia. The product life-cycle model is used to examine the pattern of evolution of New Zealand’s kiwifruit industry while revealed comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in kiwifruit. Finally, econometric analysis is employed to identify and test the strength of key determinants of kiwifruit exports. Empirical analysis suggests that domestic and trading partner incomes, market size and distance are key determinants of kiwifruit export performance

On openness and real exchange rate volatility

We address the puzzle concerning the inverse relationship between openness and real exchange rate volatility. We argue that the relationship can be explained by increased openness facilitating purchasing power parity. Using New Zealand data, we show that increased openness prolongs real exchange regimes characterised by fast mean-reversion and low volatility

On openness and real exchange rate volatility

We address the puzzle concerning the inverse relationship between openness and real exchange rate volatility. We argue that the relationship can be explained by increased openness facilitating purchasing power parity. Using New Zealand data, we show that increased openness prolongs real exchange regimes characterised by fast mean-reversion and low volatility.

ASEAN-New Zealand Trade Relations and Trade Potential

This paper explores trade development by the Association of South East Asian Nations (ASEAN) with a particular reference to New Zealand and in the context of free trade agreements and partnerships. It describes the history of ASEAN, its trade composition, diversity and intensity. The paper includes an analysis of Kojima indices of trade intensities, the trade potential index and a gravity trade model using panel data and multivariate analysis. Hypotheses derived from trade theories are then tested to identify the key determinants of trade and the implications for policy. Overall, the study shows that economic integration has had a positive impact on ASEAN nations and with New Zealand and with ongoing potential.international trade; regional economic integration; trade potential; ASEAN-New Zealand trade; FTA; CEP

Modelling New Zealand dairy products: evidence on export survival and duration

This article presents evidence concerning the pattern of New Zealand dairy exports duration and survival from 1989 to 2017. It also analyses the influence of a set of supply, demand and gravity‐type drivers on the hazard rate for New Zealand dairy export relationships. The findings are summarised as follows. First, New Zealand dairy export relationships are dynamic with numerous entries and exits to and from foreign markets. Around half of the relationships survived for only 1–2 years at the sequence level. Second, duration of sequence, left‐censoring, initial export, decomposed sequences, New Zealand export price index, the number of cows available for dairy production, the number of origins and destinations, and destination partner’s GDP are the most significant factors reducing the hazard rate of export relationships. As regards the effects of the non‐tariff measures, it is interesting that technical barriers of trade are found to significantly decrease the hazard rate. Only pre‐shipment inspection and contingent trade protective measures are significant impediments to New Zealand dairy export relationships. Finally, hazard probabilities for New Zealand dairy export relationships are estimated to be ‘L‐shaped’ over time, whether or not non‐tariff measures are applied to New Zealand dairy products

New Zealand Kiwifruit Export Performance: Market Analysis and Revealed Comparative Advantage

This paper investigates the spectacular and successful growth of New Zealand kiwifruit production and exports between 1984 and 2009. It explores the evolution, current status, future prospects and challenges facing the industry where more than 90 percent of the output is exported. The study includes a statistical analysis of the production and consumption of kiwifruit in New Zealand and other countries, with a particular focus on Asia. The product life-cycle model is used to examine the pattern of evolution of New Zealand’s kiwifruit industry while revealed comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in kiwifruit. Finally, econometric analysis is employed to identify and test the strength of key determinants of kiwifruit exports. Empirical analysis suggests that domestic and trading partner incomes, market size and distance are key determinants of kiwifruit export performance.kiwifruit; Zespri; exports; green kiwifruit; gold kiwifruit; product life cycle; horticulture; agriculture