Treasury Working Paper - The Contribution of Foreign Borrowing to the New Zealand Economy
Page updated 16 Jul 2008
The Treasury has released its third Working Paper for 2008 - The Contribution of Foreign Borrowing to the New Zealand Economy (WP 08/03) by Anthony Makin, Wei Zhang and Grant Scobie.
This paper views New Zealand’s current account deficits as symptomatic of an economic growth process in which the rate of the economy’s capital accumulation exceeds its domestic saving rate. Expansion of the domestic capital stock attributable to foreign saving leads to higher national output and national income per head, net of the servicing cost of foreign capital.
See The Contribution of Foreign Borrowing to the New Zealand Economy (WP 08/03).
