The Relationship of New Zealand FDI to The World
The World Bank (2018) reported that the lowest value achieved by New Zealand outflow if translated in
percentage of GDP is -7.87 which happened in the year 2000 and inflow was US$ -3.81 million which happened
in the year 2003. The reason behind this fall on FDI inflow and outflow is the changes in employment law, income
tax rate and it was the time when the Labour and Alliance Government took office.
Table 1.0 The New Zealand and World Inflow and Outflow FDI (Million US dollar)
Source: The World Bank, 2018
To analyse further, a scenario of FDI inflow- outflow in New Zealand during last two decades with respect to that
of the world has been presented in Figure 1.0. It appears from the Table 1.0 that FDI have a contribution to the
economy of New Zealand which had been a source of strength and which gives advantage to the country over the
years. The table also shows that even though New Zealand had experienced certain deficit in some years over the
past 20 years, they are still able to endure the fall.
Year
Inflow
Outflow
Inflow
Outflow
2017
$3,236.6
$486.0
$1,956,832.8
$1,915,471.4
2016
$1,934.9
-$900.5
$2,436,510.6
$2,052,120.7
2015
-$9.8
-$15.7
$2,408,223.8
$2,024,153.5
2014
$3,249.1
$1,422.4
$1,844,215.3
$1,727,153.8
2013
-$69.5
-$1,414.2
$2,137,569.1
$1,932,536.0
2012
$3,846.9
-$90.7
$2,117,908.5
$1,764,468.4
2011
$1,378.4
-$120.3
$2,290,061.2
$2,126,977.2
2010
$286.3
$1,033.3
$1,863,543.6
$1,751,684.5
2009
-$52.4
-$2,072.6
$1,373,076.3
$1,282,070.4
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