World trade interdependencies: a New Zealand perspective

David Gillmore and Phil Briggs
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Phil Briggs: Reserve Bank of New Zealand

Reserve Bank of New Zealand Bulletin, 2010, vol. 73, No 2, 35-46

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.

Date: 2010
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