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


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  • Sayeeda Bano

    (University of Waikato)

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    This study examines the bilateral trade relations between New Zealand and China between 1980 and 2012. Specifically, it examines, first, the strength of the trade relationship using export and import intensity indices. Secondly, it identifies the degree of trade reciprocity using a 'trade reciprocity index'. Thirdly, it estimates the magnitude of intra-industry trade using the Grubel-Lloyd and Aquino indices. Fourthly, it analyses the results from these indices to consider how trade patterns, directions and trade relations have changed between 1980 and 2012. Finally, it assesses the future prospects of trade and economic cooperation between New Zealand and China in the context of the their 2008 free trade agreement. This is the first - and possibly the only study of its kind - since the signing of the trade agreement.

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    Bibliographic Info

    Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 14/04.

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    Length: 41 pages
    Date of creation: 28 Feb 2014
    Date of revision:
    Handle: RePEc:wai:econwp:14/04

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    Keywords: international trade; New Zealand-China trade; intra-industry trade; economic integration; trade reciprocity; trade intensity indices; FTA; CER;

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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, vol. 114(2), pages 275-296, June.
    2. Andrew K. Rose, 1991. "Why Has Trade Grown Faster than Income?," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 417-27, May.
    3. Drysdale, Peter & Garnaut, Ross, 1982. "Trade Intensities and the Analysis of Bilateral Trade Flows in a Many-Country World : A Survey," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 22(2), pages 62-84, February.
    4. Swapan K. Bhattacharya & Biswanath Bhattacharyay, 2007. "Gains and Losses of India-China Trade Cooperation – a Gravity Model Impact Analysis," CESifo Working Paper Series 1970, CESifo Group Munich.
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