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An Empirical Study of Sectoral-Level Capital Investments in New Zealand

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  • Razzak, Weshah

Abstract

I extend the Glick and Rogoff (1995) aggregate time-series, empirical, intertemporal model of country-investment (and the current account) to a sectoral-level, and estimate it for New Zealand. I fit the model to panel data of eleven industries from 1988-2009. The sectoral-level investment growth is a function of lagged investment level, sector-specific TFP shocks, country-specific TFP shocks, and global TFP shocks. The estimates seem robust to government spending shocks and Terms of Trade shocks.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52461.

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Date of creation: 24 Dec 2013
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Handle: RePEc:pra:mprapa:52461

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Keywords: Investments; sectoral-level; TFP shocks; panel data;

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