The impacts and benefits of further economic integration between New Zealand and Australia are to be studied by the countries' productivity commissions.

At a meeting in Melbourne yesterday, Prime Ministers John Key and Julia Gillard announced that the productivity commissions of each country will conduct a joint scoping study to identify options for further reforms which might boost productivity, increase competitiveness and drive deeper economic integration.

The commissions will report back by December 1, 2012 for consideration by the countries' leaders in 2013.

The report will provide analysis on potential areas of further economic reform and integration, including identification of the areas of reform where benefits are likely to be most significant, with particular focus on critical issues for business, like investment and productivity.

It will examine the economic impacts and benefits of reform; any significant transition and adjustment costs that could be incurred; and identification of reform where joint net benefits are highest.

The means by which reform might be best implemented and the likely time paths over which benefits are expected to accrue, will also be covered by the report, which will be published.

Next year marks the 30th anniversary of the Closer Economic Relations trade agreement between the two countries.