Recent Trends in the Internationalisation of the New Zealand Economy

Abstract

Over the last decade, but particularly since 1984 when the fourth Labour Government came to power, New Zealand has become something of an experimental test bed for the implementation of monetarist ideas of political and economic management. A noriceable outcome of the policy regime recently put in place has been a dramatic 'opening up' of the economy as markets are deregulated protection barriers lowered and restrictions on movement of capital in and out of the country removed One consequence has been a quantitative and qualitative change in the internationalisation of the economy. This paper traces the nature and extent of thir process, and speculates on some p o k y implications. Four key dimenswns of the internationalisation process are surveyed the expanswn of New Zealand capital off-shore, increased levels of foreign investment in New Zealand the impact of reductions in border protection, and closer economic relations between Auspalia and New Zealand

Wood Chipping of Indigenous Forest on Private Land in New Zealand 1969–1993

“…This example of the New Zealand wood chip industry is indicative of the internationalisation of the New Zealand economy (Roche, 1990;Britton, 1991;Britton er al., 1992). The wood chip industry, in particular, has been intrinsically linked to Japan's growing needs for timber since the late 1960s.…”

“…The ownership structure of these chipmills is a clear indication of recent trends in the interna-tionalisation of the New Zealand economy, especially the vested interests of Japanese firms (e.g. Sumitomo Forestry; Itoh Ltd) (Britton, 1991;Britton et al, 1992). It emphasises that the wood chip industry in New Zealand, and other forest products industries, are part of an externally oriented space-economy centred on a primary commodities export base.…”

“…It emphasises that the wood chip industry in New Zealand, and other forest products industries, are part of an externally oriented space-economy centred on a primary commodities export base. It highlights New Zealand's dependence on the geo-politics of international trade agreements (Britton, 1991). International wood chipping activities in New Zealand's indigenous forests have, however, not occurred without raising criticism by an increasingly vocal national conservation lobby.…”

Space Traders: Reregulation, Property Companies and Auckland's Office Market, 1975–94

“…Poor economic performance in the 1970s, coupled with an increasing balance of payments problem, laid the foundations for a significant phase of economic restructuring. The advent of the fourth Labour Government in 1984 ushered in a rapid phase of reregulation (Britton, 1991;Britton et al, 1992). At the forefront of this process was the liberalization of finance markets.…”

“…Foreign direct investment in the financial services sector of the economy increased from NZ$189 million to NZ$439 million between 1984 and 1987. 2 The nature of the reform process, which placed emphasis on the role of the market, meant that many sources of official information became less reliable, or were abandoned, especially in relation to the impact of foreign inflows of capital (see Britton, 1991;OECD, 1993). Consequently, much of the information used in describing changes in the economy at this time is necessarily general as there exists little detailed information on sectoral transformations.…”