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Firm Dynamics in New Zealand: A Comparative Analysis with OECD Countries

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  • Duncan Mills
  • Jason Timmins

    () (New Zealand Treasury, Motu Economic and Public Policy Research)

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    Abstract

    Previous work has suggested that New Zealand’s firm dynamics and business demographics show a high proportion of small firms, small average firm size, and high rates of firm and employment turnover by comparison with other OECD countries. This paper reports on new comparative analyses of New Zealand’s firm dynamics and business demography that attempt to control for measurement differences, using data from Statistics New Zealand’s Business Demographic Statistics database, the OECD firm-level project, and the OECD’s analysis of the Eurostat database. The variables investigated include firm size, firm turnover (entry and exit) rates, employment turnover rates, firm survival rates, and firm growth. The findings suggest that once measurement differences are taken into account, overall New Zealand’s firm dynamics and demographics are broadly similar to many other OECD countries. Potential policy implications of these findings are discussed.

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    File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2004/04-11/twp04-11.pdf
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    Bibliographic Info

    Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 04/11.

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    Length: 37 pages
    Date of creation: Sep 2004
    Date of revision:
    Handle: RePEc:nzt:nztwps:04/11

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    Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
    Phone: +64-4-472 2733
    Fax: +64-4-473 0982
    Web page: http://www.treasury.govt.nz
    More information through EDIRC

    Related research

    Keywords: Firm Size; Firm Dynamics; Firm Growth; Entry and Exit;

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    Cited by:
    1. David Law & Bob Buckle & Dean Hyslop, 2006. "Toward a Model of Firm Productivity Dynamics," Treasury Working Paper Series 06/11, New Zealand Treasury.
    2. Crawford, Ron & Fabling, Richard & Grimes , Arthur & Bonner, Nick, 2004. "Determinants of National R&D and Patenting: Application to a Small, Distant Country," Occasional Papers 06/2, Ministry of Economic Development, New Zealand.
    3. Sanderson , Lynda, 2004. "Trade and Networks: Mechanisms for Productivity Growth," Occasional Papers 06/5, Ministry of Economic Development, New Zealand.
    4. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury.
    5. Greene, Francis, 2012. "Should the focus of publicly provided small business assistance be on start-ups or growth businesses?," Occasional Papers 12/2, Ministry of Economic Development, New Zealand.

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