Economic Growth Comparison: Australia and New Zealand (2023)

Desklib provides solved assignments and past papers to help students succeed.

RESEARCH REPORT
1

Table of Contents
Introduction....................................................................................................................................3
GDP per capita (PPP)....................................................................................................................4
FDI Growth and GDP (PPP) Growth..........................................................................................7
Regression analysis between FDI (%) and GDP growth rate (%) of Australia.......................8
Exports and imports....................................................................................................................11
References.....................................................................................................................................13
2

Introduction
The given report has been prepared keeping into consideration only the two nations that are a
major leader in the world economy, i.e., Australia and New Zealand. It can also be said that these
two countries are the major contributors to the world economy and therefore serving to the
different nations through providing varied types of goods and services. Not only exports, but
these two nations are totally engaged in imports. Various economic variables have been
discussed thoroughly so as to give a better picture of the concerned two nations. An attempt has
been made between these two nations as it will help to understand in a lucid manner.
Furthermore, data of all these two nations have been taken from 1990 to 2015 so that uniformity
can be maintained across all the variables.
3

GDP per capita (PPP)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.00
5000.00
10000.00
15000.00
20000.00
25000.00
30000.00
35000.00
40000.00
45000.00
50000.00
Gross Domestic Product (PPP)
GDP per capita, PPP (current international
$)
Country Name Australia New Zealand
1990 17329.58 14863.60
1991 17790.77 14566.03
1992 18189.08 14917.76
1993 19131.54 15960.70
1994 20064.29 17092.41
1995 20894.40 17907.65
1996 21972.05 18464.03
1997 22934.79 19137.32
1998 24196.72 19343.06
1999 25264.36 20579.37
2000 26328.67 21521.71
2001 27336.68 22500.48
2002 28718.24 23306.28
2003 29693.91 23967.42
2004 31327.38 25080.47
2005 32575.07 25677.42
2006 34306.65 27758.17
2007 36560.41 29385.90
2008 37459.31 29860.53
2009 40300.31 30699.66
2010 39324.37 31253.05
4

2011 41965.36 32734.54
2012 42826.79 32986.18
2013 45902.05 36219.42
2014 46880.22 37260.63
2015 46270.20 37475.18
The above table explains the relationship of Gross Domestic Product between the two countries,
namely, Australia and New Zealand. The given data is of the period 1990 to 2015. It can be
observed that there are various fluctuations over such a long duration of time. There are various
factors that are responsible for major and wide fluctuation. However, it does not mean that all
these factors are equally responsible (Turvey, 2019).
Top understand the pattern in a better manner, following table will be more helpful as analyzing
a given set of data numerically will help to understand the data in a better manner.
Particulars Australi
a
New Zealand
Minimum
value
17329.58 14566.03
Maximum
value
46880.22 37475.18
Average value 30597.81 24635.35
It can be clearly observed that in relation to minimum value there is not much fluctuation. On the
other hand in respect of maximum value there is a wider fluctuation. As such, with the passage
of time such difference keeps on increasing.
In 1990, there was not much difference, but this difference is increasing year by year. The data
pertaining to Australia has been expressed through blue color. While the data pertaining to New
Zealand has been shown with the help of line with orange color (Loeb & McFarland, 2017).
It can be clearly shown that the GDP (PPP) of Australia is comparatively higher in relation to the
GDP (PPP) of New Zealand. There was not a single year when GDP (PPP) of Australia is lower
than that of New Zealand. GDP (PPP) is somewhat different from GDP. In the given case, the
GDP (PPP) has been expressed in US $. It is derived by converting GDP into international
dollars with the help and assistance of purchasing power parity rate. Although GDP (PPP) of
5

none country is not stable. But comparing GDP (PPP) of these two nations between Australia
and New Zealand, it can be said that GDP (PPP) of New Zealand is stable.
On comparing the GDP (PPP) of two nations, it can be inferred that the GDP (PPP) of Australia
is higher than in relation to New Zealand. After the year 2008, GDP of Australia has recovered
much faster in relation to New Zealand. This is because Australia has shown higher growth in
GDP (PPP) when compared to the other nation (New Zealand).
6

FDI Growth and GDP (PPP) Growth
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
SUMMARY OUTPUT
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
FDI and GDP between Australia and New Zealand
GDP % Australia GDP % New Zealand FDI Australia FDI New Zealand
The above line chart explains the pattern of FDI growth and GDP growth between the two
nations. It can be clearly observed that the FDI growth rate of New Zealand has become negative
(Posner, 2014). However, FDI rate pertaining to New Zealand has gone negative more than that
of Australia. This can be clearly seen after careful analyzing the above graph. In the same
manner, GDP (%) of New Zealand has also gone negative in the year 2010.
7

Regression analysis between FDI (%) and GDP growth rate (%) of Australia
The regression analysis between the FDI and GDP growth rate in % in relation to Australia.
There are all the essential elements that are necessary to arrive at the regression analysis (Dhami,
2016). In the given case, the standard error comes out to be 2.01.
-1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
3.56 Residual Plot
Residuals
Here is the residual plot derived from the regression analysis.
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.05
R Square 0.00
Adjusted
R Square
-0.04
Standard
Error
2.01
Observatio
ns
25
ANOVA
df SS MS F Signific
ance F
Regression 1 0.20 0.20 0.05 0.83
Residual 23 93.35 4.06
Total 24 93.54
Coeffici Standar t Stat P- Lower Upper Lower Upper
8

ents d Error valu
e
95% 95% 95.0% 95.0%
Intercept 2.56 1.09 2.36 0.03 0.31 4.81 0.31 4.81
3.57 0.07 0.33 0.22 0.83 -0.60 0.74 -0.60 0.74
RESIDUAL
OUTPUT
PROBABILITY
OUTPUT
Observati
on
Predicte
d 2.60
Residual
s
Standard
Residuals
Percent
ile
2.61
1 2.53 -1.21 -0.61 2.00 -3.62
2 2.59 -0.84 -0.42 6.00 0.85
3 2.85 -1.47 -0.74 10.00 1.33
4 2.85 -1.30 -0.66 14.00 1.39
5 2.84 0.44 0.22 18.00 1.49
6 2.84 -1.30 -0.66 22.00 1.54
7 2.85 -1.09 -0.55 26.00 1.55
8 2.89 -1.40 -0.71 30.00 1.75
9 2.93 -2.07 -1.05 34.00 1.76
10 2.84 0.74 0.38 38.00 1.93
11 2.70 0.13 0.07 42.00 2.83
12 2.85 0.86 0.44 46.00 3.07
13 2.78 -0.85 -0.43 50.00 3.09
14 2.85 4.15 2.11 54.00 3.28
15 2.79 -6.41 -3.25 58.00 3.33
16 2.76 1.33 0.68 62.00 3.43
17 2.84 2.37 1.20 66.00 3.59
18 2.82 1.46 0.74 70.00 3.71
19 2.70 0.39 0.20 74.00 3.72
20 2.71 0.36 0.18 78.00 4.10
21 2.74 1.96 0.99 82.00 4.28
22 2.84 0.88 0.45 86.00 4.31
23 2.75 0.68 0.34 90.00 4.69
24 2.75 1.56 0.79 94.00 5.21
25 2.73 0.60 0.31 98.00 7.01
There are different factors that affect the determination of FDI growth rate. However, the major
factors responsible for the FDI growth are considered to be exports and imports as dealing in
exports and imports involves the movement of foreign exchange.
9

10

Exports and imports
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.00
50000000000.00
100000000000.00
150000000000.00
200000000000.00
250000000000.00
300000000000.00
350000000000.00
400000000000.00
450000000000.00
Australia exports New Zealand exports Australia Imports New Zealand Imports
The above diagram explains the exports and imports of Australia and New Zealand. There is a
thin difference between exports and imports of New Zealand in the beginning. But gradually this
difference increases (Waltenburg, 2012). However, such increase is lower as compared to the
difference between exports and imports of Australia. Another observation is that exports of
Australia is much higher than that of New Zealand.
Year Net exports of
Australia
Net exports of
New Zealand
1990 -23367268129.91 12175342138.29
1991 -16222687155.51 12465113661.94
1992 -14746638388.90 12991280306.25
1993 -14332373312.92 14314473756.98
1994 -25058893877.75 17024848891.87
1995 -29313218020.02 18787858661.00
1996 -26228438748.04 19884140419.04
1997 -21368250010.04 18712727731.20
1998 -19940708629.79 16652981735.88
1999 -33928047252.20 18187243759.41
2000 -28741146483.68 -3674688918.12
11

2001 -14911449898.04 -2014283023.05
2002 -28714545873.18 -2681505529.38
2003 -46733872953.49 -3736642040.06
2004 -67418886486.51 -7647815272.76
2005
-73536150680.50
-
11796985574.69
2006
-80457769861.48
-
11379530207.04
2007 -
112599318818.44
-
13625806160.26
2008 -
116628270055.74
-
15635819014.65
2009 -60799804903.25 -7116636648.50
2010 -
116356902585.45 -6584080282.21
2011 -
114939052393.82 -9701337660.17
2012
-89717186314.21
-
11888215649.13
2013 -84901393096.78 -9442382633.71
2014
-76944688793.04
-
12053295546.87
2015
-68697149530.50
-
10003935935.89
12