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Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils

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  • Michael A. Kortt
  • Brian Dollery
  • Joseph Drew

Abstract

Local government policymakers across the developed world have frequently employed municipal amalgamation to improve the operation of local councils, and New Zealand is no exception. This paper empirically examines claims made in Potential Costs and Savings of Local Government Reform in Hawke’s Bay that the merger of the five local authorities in the Hawke’s Bay Region of New Zealand would generate significant cost-savings. We empirically test for the existence of scale economies in a single merged Hawke’s Bay council and find that no cost-savings can be expected. This removes a key argument for a forced Hawke’s Bay amalgamation.

Suggested Citation

  • Michael A. Kortt & Brian Dollery & Joseph Drew, 2016. "Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils," Local Government Studies, Taylor & Francis Journals, vol. 42(2), pages 228-247, March.
    • Handle: RePEc:taf:flgsxx:v:42:y:2016:i:2:p:228-247
    DOI: 10.1080/03003930.2015.1007133
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    1. repec:ces:ifodre:v:24:y:2016:i:04:p:45-49 is not listed on IDEAS
    2. Luan V. Bernardelli & Brian E. Dollery & Michael A. Kortt, 2021. "An Empirical Analysis of Scale Economies in Administrative Intensity in the Paraná State Local Government System in Brazil," Sustainability, MDPI, vol. 13(2), pages 1-13, January.
    3. Dollery, Brain & Piper, Donella, 2020. "Council cooperation in New South Wales: Why have some councils not joined joint organisations?," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 125-136.
    4. Gerard Turley & John McDonagh & Stephen McNena & Arkadiusz Grzedzinski, 2018. "Optimum Territorial Reforms in Local Government: An Empirical Analysis of Scale Economies in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 49(4), pages 463-488.
    5. Tavares Antonio F., 2018. "Municipal amalgamations and their effects: a literature review," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 22(1), pages 5-15, March.
    6. Janice Morphet, 2017. "Rescaling the suburban: New directions in the relationship between governance and infrastructure," Local Economy, London South Bank University, vol. 32(8), pages 803-817, December.
    7. Felix Rösel, 2016. "Sparen Gebietsreformen Geld? – Ein Überblick über aktuelle Studien," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(04), pages 45-49, August.

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