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Trade Relations between New Zealand and China: An Empirical Analysis in the Context of a Free Trade Agreement

Author

Listed:
  • Sayeeda Bano

    (Department of Economics, University of Waikato, Private Bag 3015, Hamilton, NEW ZEALAND)

Abstract

This study examines the bilateral trade relations between New Zealand and China from 1980 to 2012. It examines the strength of the trade relationship using export and import intensity indices; identifies the degree of trade reciprocity using a 'trade reciprocity index'; estimates the magnitude of intra-industry trade using the Grubel-Lloyd and Aquino indices; and analyses these indices to consider how trade patterns and relations have changed between 1980 and 2012. Significant growth in trade between New Zealand and China has been achieved since the signing of a free trade agreement in 2008.The intensity of trade has strengthened; and there has been growth in reciprocal trade and intra-industry trade for a number of industries and product groups. The results foreshadow future bilateral trade, investment, technology transfer and economic relations between New Zealand and China.

Suggested Citation

  • Sayeeda Bano, 2014. "Trade Relations between New Zealand and China: An Empirical Analysis in the Context of a Free Trade Agreement," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 75-92, November.
    • Handle: RePEc:bap:journl:140406
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    References listed on IDEAS

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    1. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    2. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    3. P. J. Lloyd & Hyun-Hoon Lee (ed.), 2002. "Frontiers of Research in Intra-Industry Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-28598-9.
    4. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    5. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hossain, Ekram & Dechun, HUANG & ZHANG, Changzheng & Neequaye, Ebenezer Nickson & Van, Vu Thi & Ali, Mohammad, 2021. "Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications," OSF Preprints 7j9vh, Center for Open Science.
    2. Vivien Kitty Molnár & Dechun Huang & Md. Ekram Hossain, 2020. "Europe and Central Asia in China’s Belt and Road’ Initiative: A Multidimensional Analysis of Trade Intensiveness," Applied Economics and Finance, Redfame publishing, vol. 7(1), pages 33-41, January.

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    More about this item

    Keywords

    International trade; New Zealand; China; Trade-intensity; Trade reciprocity; Intraindustry trade; Economic integration; FTA; CER;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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