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

Sayeeda Bano

Working Papers in Economics from University of Waikato

Abstract: 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.

Keywords: international trade; New Zealand-China trade; intra-industry trade; economic integration; trade reciprocity; trade intensity indices; FTA; CER (search for similar items in EconPapers)
JEL-codes: F02 F10 F13 F14 F15 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2014-02-28
New Economics Papers: this item is included in nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:14/04

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