Re-inventing New Zealand: Institutions Output and Patents 1870-1939
New estimates of commodity output and patenting are used to explore New Zealandâ€™s transition from extensive to intensive growth. By investigating the cointegrating and causal relationships among the output of 25 industries we show that a small number of common trends shaped the contours of her economic development. In turn the leading industries were driven by knowledge growth as reflected in patents statistics. New Zealand's distinctive institutions and human capital fostered the knowledge which transformed the farming landscape, promoted wider land ownership, and created a production system which integrated farm and factory to promote intensive growth.
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