New Zealand kiwifruit export performance: Market analysis and revealed comparative advantage

Abstract

This paper investigates the spectacular and successful growth of New Zealand kiwifruit production and exports between 1984 and 2009. It explores the evolution, current status, future prospects and challenges facing the industry where more than 90 percent of the output is exported. The study includes a statistical analysis of the production and consumption of kiwifruit in New Zealand and other countries, with a particular focus on Asia. The product life-cycle model is used to examine the pattern of evolution of New Zealand’s kiwifruit industry while revealed comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in kiwifruit. Finally, econometric analysis is employed to identify and test the strength of key determinants of kiwifruit exports. Empirical analysis suggests that domestic and trading partner incomes, market size and distance are key determinants of kiwifruit export performance.