The Export Growth and Revealed Comparative Advantage of the New Zealand Kiwifruit Industry

Abstract

This paper investigates the growth of New Zealand’s Kiwifruit production and exports between 1981 and 2011. It analyses the industry’s history, current status, and its future prospects and challenges. It includes a statistical analysis of the development of the industry. Export volumes by market are reported for the relevant period. Revealed comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in Kiwifruit. Econometric analysis is employed to identify the key determinants of Kiwifruit exports. The analysis shows that New Zealand Kiwifruit has been an export success during the last three decades. This success has been accompanied by fluctuations and challenges characteristic of many markets. The estimates of revealed comparative advantage demonstrate that New Zealand has very high degree of comparative advantage in Kiwifruit. Empirical analysis suggests that domestic and trading partners’ incomes, market size and seasonality are key determinants of Kiwifruit exports.