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Geography, Trade and Growth Problems and Possibilities for the New Zealand Economy - WP 03/03

Publication Details

  • Geography, Trade and Growth Problems and Possibilities for the New Zealand Economy
  • Published: Jun 2003
  • Status: Current
  • Author: McCann, Philip
  • JEL Classification: F12; L14; R11
  • Hard copy: Available in HTML and PDF formats only.
 

Geography, Trade and Growth: Problems and Possibilities for the New Zealand Economy

New Zealand Treasury Working Paper 03/03

Published June 2003

Author: Philip McCann

Abstract

This paper discusses the latest thinking in the relationships between the economics of trade, geography and industrial clusters. The aim of the paper is to explain the relevance of these various arguments for the economy of New Zealand and to suggest a possible public policy role for overcoming the growth problems associated with geographic periphery. As we will see, much of the current thinking on the relationships between geography, trade and clusters implies that New Zealand’s long-term growth prospects are rather weak. However, it will be argued here that a detailed consideration of these relationships, plus some evidence from the UK, also provides some guidance as to possible strategies which New Zealand can employ to promote growth. In particular, the development of public policies which are specifically aimed at reducing the spatial market-area constraints of the New Zealand small-firm sector may be worthwhile.

Contents

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Abstract

Table of Contents

List of Tables

1. Introduction

2. Spatial Transactions Costs

3. International Geographical Peripherality and Competitive Advantage

4. Agglomeration Economies and Economic Growth

5. Alternative Models of Industrial Clusters

6. New Zealand, Economic Geography and Public Policy

7. Conclusions

References

twp03-03.pdf (215 KB) pp. 1–28

List of Tables

Acknowledgements

I would like to thank Bob Buckle and the various participants at the economics seminar hosted by the New Zealand Treasury, September 2002.

Disclaimer

The views expressed in this Working Paper are those of the author(s) and do not necessarily reflect the views of the New Zealand Treasury. The paper is presented not as policy, but with a view to inform and stimulate wider debate.

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