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How volatile are New Zealand’s terms of trade? An international comparison

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Abstract

The terms of trade are a key influence on New Zealand’s economy, and have often been quite volatile. This article compares New Zealand’s experience with those of a group of other advanced economies. Cycles in New Zealand’s terms of trade have been relatively large, but similar to those in the other advanced commodity exporting countries, such as Australia and Norway. Volatile export prices have typically been the main factor in the variability of commodity-exporting countries’ terms of trade.

Suggested Citation

  • Daan Steenkamp, 2014. "How volatile are New Zealand’s terms of trade? An international comparison," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 77, pages 3-14, June.
    • Handle: RePEc:nzb:nzbbul:jun2014:04
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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2014/2014jun77-2steenkamp.pdf
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    1. Geoff Lewis & Sally Garden & Hamed Shafiee & Geoff Simmons & Jo Smith, 2021. "Frontier firms: Four industry case studies," Working Papers 2021/02, New Zealand Productivity Commission.
    2. Ross Kendall, 2014. "Economic linkages between New Zealand and China," Reserve Bank of New Zealand Analytical Notes series AN2014/06, Reserve Bank of New Zealand.

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