WELLINGTON, July 16 (Xinhua) -- Every 1 percent increase in China's gross domestic product (GDP) correlates to a rise in New Zealand's GDP of 0.2 percent to 0.4 percent, New Zealand's Treasury said Tuesday in a report.
However, the paper, dubbed Empirical Evidence on Growth Spillovers from China to New Zealand, also noted that it was " striking that estimated growth spillovers are substantially greater from the U.S. than from China, despite the latter's increasing importance in the world economy."
The Treasury researchers used models estimating growth from the mid-1980s to 2011 and found that commodity prices formed an important part of the growth spillover effect in a 10-year window of data from the mid-1990s, especially in the latter part of the period.
"The impact of China on global commodity prices has been steadily increasing over time, with growth in China having strongest effects on dairy and aluminum price inflation," said the paper.
Although data availability extended only to the end of 2011, recent indicators, including China's demand for New Zealand's dairy products, pointed to the role of China being maintained or increased in the near future.
The paper was one of three Treasury papers released Tuesday examining the impact of China's growth on New Zealand.
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