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Strengthening International Linkages - How New Zealand Performs


This Document is Archived


Overview - Advancing Economic Development

[ Last Updated 10 January 2006 ]


International linkages - through trade, the movement of people, foreign direct investment and the flow of new knowledge - are a key determinant of the productivity and competitiveness of firms in a small, distant economy such as New Zealand's. New Zealand has one of the most open economies in the world. While growth in exports has been faster in the last decade than in the previous two, New Zealand still faces significant barriers to agricultural exports and our share of world exports has been falling.

  • Trade as a proportion of GDP is low for a small country - this reflects the effects of distance and the fact that we specialise in exports which have a low import content.

    Exports and Imports - OECD Member Countries, 2002

    Graphic of "Exports and Imports - OECD Member Countries, 2002"

    Source: OECD National Accounts.

  • A quarter of all firms with more than 6 staff (FTEs) export to some degree, and half of all firms with more than 50 staff are exporters. Regardless of firm size, the majority of New Zealand exporting firms export less than 10% of their sales.
  • Growth in exports has accelerated over the last decade. Growth in services exports has been faster than the world average - and tourism and export education have made strong contributions.
  • Exports have become more diversified over the last several decades - and this is reflected in reduced terms of trade volatility. The sustained lift in New Zealand's terms of trade over the last 15 years reflects a lift in the sophistication of exports and more efficient importing.

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