New Zealand's attractiveness as an investment destination has slumped in the last 10 to 15 years, according to think tank the New Zealand Initiative.
Its report Capital Doldrums: How Globalisation is Bypassing New Zealand shows foreign direct investment or FDI in New Zealand had stagnated, after a period of popularity between 1980s and mid-90s.
In 2011, a United Nations committee on trade and development put New Zealand 146th in the world for its ability to attract foreign investment, falling from 73rd in 2000. Australia was 24th.
Oliver Hartwich, the institute's executive director, said the country's poor FDI regulation settings let it down.
The report's co-author, Bryce Wilkinson, said New Zealand had to be less sensitive about overseas money.