Foreign direct investment - a focus on the evidence

08 July 2011

By Chris Nixon

A report to Agmardt.

How New Zealand interconnects with the world is a major issue for New Zealand. In particular, the sale of farm land to foreigners has sparked controversy. Foreign Direct Investment (FDI) is a highly sensitive topic for many in New Zealand.

In this short paper we set out the evidence on FDI – particularly the evidence associated with land-based FDI – by examining:

  • What influences and drives foreign ownership in New Zealand and abroad
  • The regulatory changes made by the government in early 2011
  • Which countries are investing in New Zealand and at what levels
  • A framework that sets out the pros and cons of FDI.