Freeing up foreign investment

In a series of research reports in 2013 and 2014, the Initiative showed New Zealand’s foreign direct investment (FDI) regime residing in the Overseas Investment Act 2005 (OIA) is among the most hostile towards foreign investment of those measured by the Paris-based OECD, and foreigners’ ability to invest directly in New Zealand depends on decisions by bureaucrats in Wellington.

It found there is no foundation for fears about foreigners “taking over” New Zealand’s land and resources. The stock of inward FDI as a percentage of GDP is about a third lower than it was 25 years ago.

Conversely, the country’s stifling investment regime reduces the value of New Zealand’s resources, the briefing paper says. 

International data shows that well-managed FDI benefits domestic economies. Countries that invite international investors typically boost their competitiveness by attracting not just foreign capital but also the accompanying technologies, management expertise, and access to overseas markets.