Response to New Zealand's agricultural sector from economic growth and free trade in China : a computable general equilibrium analysis : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Economics at Massey University, Palmerston North, New Zealand
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Date
2011
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Massey University
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Abstract
China’s growth performance over the last three decades has stood at a phenomenal
nine percent per annum and shows little sign of abating despite challenging market
conditions in recent times. With ever increasing demand and limited land availability
this is set to have an increasing impact on New Zealand which has a comparative
advantage in land-intensive agricultural products. Already this is observable in recent
trade statistics. Using GTAP (global trade analysis project), a computable general
equilibrium model, this research estimates the future effects of Chinese growth to
New Zealand’s agricultural sectors and its economy in general. Almost all primary
industries in New Zealand can expect to benefit from China’s growth, most notably
wool and forestry. Modest gains in gross domestic product and economic welfare also
benefit the country on the whole. Chinese growth also complements the well
documented gains of the recently signed free trade agreement between the two
nations.
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Keywords
Chinese economy, Free trade, Agricultural industry, Trade agreement, Economic growth