What has New Zealand gained from The FTA with China?: Two counterfactual analyses†

Samuel Verevis and Murat Üngör

Scottish Journal of Political Economy, 2021, vol. 68, issue 1, 20-50

Abstract: We investigate the effects of the 2008 New Zealand (NZ)–China free trade agreement (FTA) on exports from NZ to China, and real GDP per capita in NZ using the synthetic control method to estimate the counterfactuals. NZ exports to China were more than 200% higher in 2014 than what they would have had the FTA never been signed. NZ's food and live animals exports to China were more than 180% higher in 2014 than the counterfactual. Our counterfactuals indicate a small but negative effect of the FTA on NZ's real GDP per capita between 2009 and 2012.

Date: 2021
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