The Treasury

Global Navigation

Personal tools

You are here: Home > Publications > Research and Policy > Working Papers > 2000 > Facts About Economic Integration: How Integrated is New Zealand with the Rest of the World? (WP 00/21)

Treasury
Publication

Facts About Economic Integration: How Integrated is New Zealand with the Rest of the World? - WP 00/21

Publication Details

  • Facts About Economic Integration: How Integrated is New Zealand with the Rest of the World?
  • Published: Dec 2000
  • Status: Current
  • Authors: Claridge, Megan; Plater, Vicki
  • JEL Classification: J40
  • Hard copy: Available in PDF format only.
 

Facts About Economic Integration: How Integrated is New Zealand with the Rest of the World?

New Zealand Treasury Working Paper 00/21

Published Dec 2000

Authors: Vicki Plater and Megan Claridge

Abstract

The paper provides comparative data about New Zealand's current level of market and policy integration with the rest of the world. Market integration occurs when two or more economies function as a single market. It is likely to be evidenced by high flows of goods, services, capital and labour and convergence of prices. Policy openness and integration are means governments might use to encourage, impede or direct market integration. Indicators include lack of barriers to cross border flows and similarity or compatibility of policy settings between countries.

The paper concludes that New Zealand has a relatively high level of integration with the global economy. The widespread perception, however, that New Zealand is a great deal more open and integrated than the rest of the world is not supported. We are broadly similar to other advanced economies in both openness of policies and integration of markets, and significantly less integrated than other small economies. New Zealand started opening comparatively recently. The perception that we are 'leading the bunch' may have arisen due to the rapid liberalisation required to catch up with other advanced economies and overcome the burden of distance.

Page top