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Policies to support sustainable long-term growth in New Zealand

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  • Calista Cheung

    (OECD)

Abstract

As its workforce ages and major economies shift towards producing higher value-added goods and services, New Zealand will face increasing challenges to remain globally competitive and maintain high living standards. Future growth will need to come increasingly from productivity gains, and resources will have to shift towards activities that rely more on skills, technology and intangible assets. Strengthening international linkages will be crucial to overcoming geographic disadvantages and will require improvements in the information and communications technology infrastructure, together with innovation leveraged off the country’s strong primary industry knowledge base. Continuing to raise skill levels and the pensionable age will also help counter the effects of ageing. Lifting national saving, partly by targeting a higher public saving rate, will reduce the persistently high relative real interest rates and the sustained overvaluation of the real exchange rate, which potentially harm economic activity. To improve the sustainability of growth, revenues from non-renewable resource extraction need to be invested for the benefit of future generations and greater efforts devoted to mitigate the damage to natural capital from economic activity, particularly with respect to water quality. This Working Paper relates to the 2013 OECD Economic Review of New Zealand (www.oecd.org/eco/surveys/New Zealand). Des politiques en faveur d'une croissance viable à long terme en Nouvelle-Zélande Tandis que sa population active vieillit et que les grandes économies s’orientent vers la production de biens et services apportant une plus grande valeur ajoutée, il va devenir de plus en plus difficile pour la Nouvelle-Zélande de rester compétitive sur la scène mondiale et de maintenir un niveau de vie élevé. À l’avenir, la croissance devra s’appuyer de plus en plus sur les gains de productivité, et les ressources devront être consacrées à des activités qui font davantage appel aux qualifications, aux technologies et aux actifs incorporels. Le renforcement des liaisons internationales, déterminant pour surmonter l’éloignement géographique, nécessitera une amélioration de l’infrastructure des technologies de l’information et de la communication, ainsi qu’une innovation tirant parti de la solide base de connaissances du pays dans le secteur primaire de l’économie. S’il continue à relever les niveaux de qualification ainsi que l’âge du départ à la retraite, le pays pourra compenser les effets du vieillissement de la population et, en visant un taux d’épargne publique plus élevée, il réduira les effets potentiellement néfastes de la lourde dette extérieure pour l’activité économique. Pour rendre la croissance plus durable, il devra investir les recettes de l’extraction des ressources non renouvelables au bénéfice des générations futures, et consacrer davantage d’efforts à l’atténuation des dommages qu’entraîne l’activité économique pour le capital naturel, et notamment la qualité de l’eau. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Nouvelle-Zélande 2013 (www.oecd.org/eco/etudes/Nouvelle-Zélande).

Suggested Citation

  • Calista Cheung, 2013. "Policies to support sustainable long-term growth in New Zealand," OECD Economics Department Working Papers 1076, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1076-en
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    File URL: http://dx.doi.org/10.1787/5k43gjfhwvxn-en
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    Cited by:

    1. David Turner & Francesca Spinelli, 2013. "The Effect of Government Debt, External Debt and their Interaction on OECD Interest Rates," OECD Economics Department Working Papers 1103, OECD Publishing.

    More about this item

    Keywords

    ageing; avantage comparatif; capital humain; capital naturel; changement climatique; climate change; commerce; comparative advantage; croissance; croissance durable; croissance verte; distance; distance; déséquilibres macroéconomiques; emissions trading scheme; globalisation; green growth; growth; human capital; innovation; innovation; labour force participation; macroeconomic imbalances; migration; migration; mondialisation; natural capital; net foreign assets; product market regulation; redevances; royalties; réglementation des marchés de produits; sustainable growth; système d’échange de quotas d’émissions; trade; vieillissement;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F10 - International Economics - - Trade - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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