The New Zealand Economy: A Case Study of High Import and Export Dependency

Abstract

The specialized pastoral development and the debts incurred to buy high quantities of imports, have produced interesting results in New Zealand's terms of trade and balance of payments over the past few years. It is these terms of trade and balance of payments I wish to discuss in this paper. Each of the two main sections of the paper are begun by defining New Zealand's terms of trade and balance of payments respectively. After each description, ideas are presented which suggest feasible causes of New Zealand's current situation in both of the areas under discussion.