Recent Trends in the Internationalisation of the New Zealand Economy

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 noticeable 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 this process, and speculates on some policy implications. Four key dimensions of the internationalisation process are surveyed: the expansion 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 Australia and New Zealand.