Story: Spending in the economy

Spending locally

Spending locally

Historically, governments restricted imports in order to limit spending of overseas earnings. From the early 20th century for example, the government protected local motor-vehicle production by imposing a higher tariff on imports of fully assembled cars. From the mid-20th century, a percentage of a vehicle's components had to be locally produced. These measures encouraged spending – on labour, on parts, and on the finished car –  to take place within New Zealand. Once imports were allowed easy entry, the car assembly industry collapsed. These imported cars are shown in front of logs ready for export in 2004.

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How to cite this page:

Paul Dalziel, 'Spending in the economy - Economic reform from 1984', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/photograph/21633/spending-locally (accessed 9 August 2022)

Story by Paul Dalziel, published 11 Mar 2010, updated 16 Sep 2016