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Echanching Productivity: Towards an Updated Action Agenda

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    This paper presents an explanation of how the dynamic but uncertain process of economic development and growth occurs. It shows that economic development leads to structural change, an enhancement of capabilities and path dependence in the economy. It examines three different approaches to understanding the performance of the New Zealand economy and shows that performance of the New Zealand economy is consistent with its structure and sophistication. It suggests areas where policy might be developed to enhance New Zealand’s economic performance, and argues that both improvements in framework policies and enhancement of facilitative policies will be required to improve New Zealand’s economic performance. However, the development of specific policies is left for later work.

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    Paper provided by Ministry of Economic Development, New Zealand in its series Occasional Papers with number 11/1.

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    Length: 71 pages
    Date of creation: 30 Mar 2011
    Date of revision:
    Handle: RePEc:ris:nzmedo:2011_001
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    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
    2. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
    3. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
    4. Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
    5. Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
    6. Richard Fabling & Arthur Grimes & Lynda Sanderson, 2011. "Whatever next? Export market choices of New Zealand firms," ERSA conference papers ersa10p367, European Regional Science Association.
    7. Germà Bel & Xavier Fageda, 2005. "Getting there fast: Globalization, intercontinental flights and location of headquarters," Urban/Regional 0511008, EconWPA.
    8. Chad Syverson, 2010. "What Determines Productivity?," NBER Working Papers 15712, National Bureau of Economic Research, Inc.
    9. Arthur Grimes, 2004. "New Zealand: A Typical Australasian Ecomony?," Working Papers 04_11, Motu Economic and Public Policy Research.
    10. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    11. Davis, Nick, 2006. "Business R&D, Innovation and Economic Growth: An Evidence-Based Synthesis of the Policy Issues," Occasional Papers 06/8, Ministry of Economic Development, New Zealand.
    12. Yvan Guillemette, 2009. "Structural Policies to Overcome Geographic Barriers and Create Prosperity in New Zealand," OECD Economics Department Working Papers 696, OECD Publishing.
    13. Fabling, Richard, 2007. "Just How Innovative are New Zealand Firms? Quantifying & Relating Organisational and Marketing Innovation to Traditional Science & Technology Indicators," Occasional Papers 07/4, Ministry of Economic Development, New Zealand.
    14. Hildegunn Kyvik Nordås & Sébastien Miroudot & Przemyslaw Kowalski, 2006. "Dynamic Gains from Trade," OECD Trade Policy Papers 43, OECD Publishing.
    15. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895, March.
    16. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change
      [Understanding the Process of Economic Change]
      ," Introductory Chapters, Princeton University Press.
    17. Fabling, Richard & Sanderson, Lynda, 2008. "Firm Level Patterns in Merchandise Trade," Occasional Papers 08/3, Ministry of Economic Development, New Zealand.
    18. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    19. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "Trading Tasks: A Simple Theory of Offshoring," NBER Working Papers 12721, National Bureau of Economic Research, Inc.
    20. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-45, January.
    21. Hausmann, Ricardo & Rodrik, Dani & Sabel, Charles F., 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," Working Paper Series rwp08-031, Harvard University, John F. Kennedy School of Government.
    22. Carlos Carreira & Filipe Silva, 2010. "No Deep Pockets: Some Stylized Empirical Results On Firms' Financial Constraints," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 731-753, 09.
    23. Boyle Glenn, 2008. "Pay Peanuts and Get Monkeys? Evidence from Academia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-26, July.
    24. Cameron, Linda & Chapple, Bryan & Davis, Nick & Kousis , Artemisia & Lewis, Geoff, 2007. "New Zealand Financial Markets, Saving and Investment," Occasional Papers 07/5, Ministry of Economic Development, New Zealand.
    25. Crawford, Ron & Fabling, Richard & Grimes , Arthur & Bonner, Nick, 2004. "Determinants of National R&D and Patenting: Application to a Small, Distant Country," Occasional Papers 06/2, Ministry of Economic Development, New Zealand.
    26. Faye Braithwaite & Simon Kemp, 2007. "Safe as houses: Investor confidence in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 41(2), pages 225-236.
    27. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
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