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An Empirical Examination of Trade Relations between New Zealand and China in the Context of a Free Trade Agreement

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Abstract

This study examines the bilateral trade relations between New Zealand and China between 1980 and 2012. Specifically, it examines, first, the strength of the trade relationship using export and import intensity indices. Secondly, it identifies the degree of trade reciprocity using a 'trade reciprocity index'. Thirdly, it estimates the magnitude of intra-industry trade using the Grubel-Lloyd and Aquino indices. Fourthly, it analyses the results from these indices to consider how trade patterns, directions and trade relations have changed between 1980 and 2012. Finally, it assesses the future prospects of trade and economic cooperation between New Zealand and China in the context of the their 2008 free trade agreement. This is the first - and possibly the only study of its kind - since the signing of the trade agreement.

Suggested Citation

  • Sayeeda Bano, 2014. "An Empirical Examination of Trade Relations between New Zealand and China in the Context of a Free Trade Agreement," Working Papers in Economics 14/04, University of Waikato.
    • Handle: RePEc:wai:econwp:14/04
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    5. Kiichiro Fukasaku, 1992. "Economic Regionalisation and Intra-Industry Trade: Pacific-Asian Perspectives," OECD Development Centre Working Papers 53, OECD Publishing.
    6. Anonymous, 1964. "International Monetary Fund," International Organization, Cambridge University Press, vol. 18(4), pages 872-873, October.
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    9. Andrew K. Rose, 1991. "Why Has Trade Grown Faster than Income?," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 417-427, May.
    10. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    11. P. J. Lloyd & Hyun-Hoon Lee (ed.), 2002. "Frontiers of Research in Intra-Industry Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-28598-9, December.
    12. Lisbeth Hellvin, 1996. "Vertical Intra-Industry Trade Between China and OECD Countries," OECD Development Centre Working Papers 114, OECD Publishing.
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    14. Daniel M. Bernhofen, 2002. "Intra-Industry Trade in Homogeneous Products," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 4, pages 49-66, Palgrave Macmillan.
    15. Swapan K. Bhattacharya & Biswanath Bhattacharyay, 2007. "Gains and Losses of India-China Trade Cooperation – a Gravity Model Impact Analysis," CESifo Working Paper Series 1970, CESifo.
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    1. Aggarwal, Sakshi & Chakraborty, Debashis, 2017. "Determinants of India’s Bilateral Intra-Industry Trade over 2001-15: Empirical Results," MPRA Paper 78020, University Library of Munich, Germany.
    2. Aggarwal, Sakshi, 2017. "Sectoral Level Analysis of India’s Bilateral Trade over 2001-2015," MPRA Paper 80099, University Library of Munich, Germany.
    3. Hossain, Ekram & Dechun, HUANG & ZHANG, Changzheng & Neequaye, Ebenezer Nickson & Van, Vu Thi & Ali, Mohammad, 2021. "Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications," OSF Preprints 7j9vh, Center for Open Science.
    4. Aggarwal, Sakshi, 2023. "Intra-industry trade: Revisiting theory and Literature Survey," MPRA Paper 117182, University Library of Munich, Germany.
    5. Vivien Kitty Molnár & Dechun Huang & Md. Ekram Hossain, 2020. "Europe and Central Asia in China’s Belt and Road’ Initiative: A Multidimensional Analysis of Trade Intensiveness," Applied Economics and Finance, Redfame publishing, vol. 7(1), pages 33-41, January.

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    More about this item

    Keywords

    international trade; New Zealand-China trade; intra-industry trade; economic integration; trade reciprocity; trade intensity indices; FTA; CER;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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