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Returns to Scale, Technical Progress and Total Factor Productivity Growth in New Zealand Industries

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Author Info
Kevin J Fox () (School of Economics, & CAER, University of New South Wales)
Abstract

This paper reviews and applies some recently proposed methods for separating total factor productivity (TFP) growth into contributions from technical progress and returns to scale, allowing for imperfectly competitive markets. The methods are applied to New Zealand data, using a recently available dataset on nine market-sector industries and the aggregate market sector, 1988-2002. The findings suggest that there has been little contribution from technical progress to TFP growth, but increasing returns to scale may have played a substantial role. However, the results are not statistically satisfactory for several industries, and are quite sensitive to the model used. This highlights the need for more work on both data and analysis if a better understanding is to be had of New Zealand’s productivity performance.

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File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2005/05-04/twp05-04.pdf
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Publisher Info
Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 05/04.

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Length: 26 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:nzt:nztwps:05/04

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Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
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Related research
Keywords: Returns to scale technical progress monopolistic markups

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Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

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