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World trade interdependencies: a New Zealand perspective

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Author Info

  • David Gillmore
  • Phil Briggs

    (Reserve Bank of New Zealand)

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    Abstract

    A key determinant of New Zealand’s growth is its trade with the rest of the world. We have developed a world inputoutput table to investigate the way in which New Zealand and Australia depend on the rest of the world, and to look at the role of demand in China, Japan, the US, and the euro area. We show how higher demand in one economy affects production in another economy both directly, through its higher demand for final products, and indirectly, via its higher demand for intermediate products and its impact on production and demand in other economies. We highlight the impact of US demand on other economies and demonstrate the importance of Chinese and Australian demand on New Zealand.

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    File URL: http://rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2010/2010jun73_2gillmorebriggs.pdf
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    Bibliographic Info

    Article provided by Reserve Bank of New Zealand in its journal Reserve Bank of New Zealand Bulletin.

    Volume (Year): 73 (2010)
    Issue (Month): (June)
    Pages: 35-46

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    Handle: RePEc:nzb:nzbbul:june2010:4

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    1. Iris Claus & Kathy Li, 2003. "New Zealand’s Production Structure: An International Comparison," Treasury Working Paper Series 03/16, New Zealand Treasury.
    2. Fukunari Kimura & Hyun-Hoon Lee, 2006. "The Gravity Equation in International Trade in Services," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(1), pages 92-121, April.
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    Cited by:
    1. Yan Sun, 2011. "From West to East: Estimating External Spillovers to Australia and New Zealand," IMF Working Papers 11/120, International Monetary Fund.

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