Industry productivity and the Australia-New Zealand income gap
AbstractDifferences in productivity explain much of the growing income gap between Australia and New Zealand. Good policy responses rely on understanding the sources of these differences. Seventy percent of the aggregate gap in productivity between the two countries is due to underperformance of New Zealand’s industries rather than a difference in the industrial structure of the two countries. Our findings support the idea of studying and tackling the root causes of productivity differences at the sectoral level. The significant differences in multifactor productivity also indicate the need for more focus on the quality of labour, capital, and management, and regulatory environment.
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Bibliographic InfoPaper provided by New Zealand Institute of Economic Research in its series NZIER Working Paper with number 2011/3.
Length: 20 pages
Date of creation: 30 Sep 2011
Date of revision:
productivity; industry; New Zealand; Australia;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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