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Can the Kiwi Fly? Achieving Productivity Lift-off in New Zealand

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  • Paul Conway

Abstract

New Zealand's poor long-run productivity performance has puzzled domestic economists and international observers for decades. To provide answers, this article sketches out the broad reasons why lifting productivity has proven so difficult. Against the background of ongoing changes in technology and in the global trading environment, the article also puts forward a number of high-level policy suggestions aimed at countering the economic forces that have constrained productivity, including opening the economy to new opportunities for international connection, and encouraging capital deepening, greater competition and more effective innovation. Getting this right requires a deep understanding of New Zealand's productivity track record and potential in the 21st century global economy and presents a major challenge for the New Zealand public sector.

Suggested Citation

  • Paul Conway, 2018. "Can the Kiwi Fly? Achieving Productivity Lift-off in New Zealand," International Productivity Monitor, Centre for the Study of Living Standards, vol. 34, pages 40-63, Spring.
    • Handle: RePEc:sls:ipmsls:v:34:y:2018:3
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    File URL: http://www.csls.ca/ipm/34/Conway.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    New Zealand; Productivity; Productivity Puzzle; Productivity Slowdown;
    All these keywords.

    JEL classification:

    • N37 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Africa; Oceania
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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