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Changes in New Zealand's Production Structure: An Input Output Analysis




This paper investigates changes in the production structure of the New Zealand economy using input output data. The analysis is undertaken at the 25-industry level using inter industry transactions for 1971-72, 1977-78, 1981-82, 1986-87, 1990-91 and 1994-95. Changes in the composition of gross output and value added are examined. Backward and forward linkages, indices of industry interconnectedness, a value added production multiplier, a cumulated primary input coefficient for compensation of employees and a measure of import content of final demand output are calculated, taking into account both direct and indirect transactions. The results suggest that some industries have been subject to large structural change and that a shift in New Zealand's pattern of industrial activity has occurred. These changes will have affected the transmission and propagation of shocks in the economy.

Suggested Citation

  • Iris Claus, 2003. "Changes in New Zealand's Production Structure: An Input Output Analysis," Treasury Working Paper Series 03/01, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:03/01

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    References listed on IDEAS

    1. Robert Dixon, 1996. "Inter-Industry Transactions and Input-Output Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 29(3), pages 327-336.
    2. Robert Buckle & David Haugh & Peter Thomson, 2003. "Calm after the storm? Supply-side contributions to New Zealand's GDP volatility decline," New Zealand Economic Papers, Taylor & Francis Journals, vol. 37(2), pages 217-243.
    3. Erwin Diewert & Denis Lawrence, 1999. "Measuring New Zealand’s Productivity," Treasury Working Paper Series 99/05, New Zealand Treasury.
    4. Iris Claus, 2002. "Inter industry linkages in New Zealand," Treasury Working Paper Series 02/09, New Zealand Treasury.
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    Cited by:

    1. Iris Claus & Kathy Li, 2003. "New Zealand’s Production Structure: An International Comparison," Treasury Working Paper Series 03/16, New Zealand Treasury.
    2. Aaron G Grech & Noel Rapa, "undated". "Trends in Malta’s current account and their underlying causes," CBM Policy Papers PP/03/2016, Central Bank of Malta.
    3. World Bank, 2010. "Reform and Regional Integration of Professional Services in East Africa : Time for Action," World Bank Other Operational Studies 2957, The World Bank.

    More about this item


    Input output models; industry importance; production structure; inter industry dependencies;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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