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Productivity distributions in New Zealand: The dangers of international comparison

Author

Listed:
  • Richard Fabling

    (Motu Economic and Public Policy Research)

  • Lynda Sanderson

    (The Treasury)

Abstract

Recent discussions of New Zealand's relative economic performance have drawn a link between firm-level productivity dispersion and a lack of competitive pressure. This note describes a simple example using New Zealand firm-level data which casts doubt on the assertion that New Zealand has a “long tail” of low productivity firms relative to other countries.

Suggested Citation

  • Richard Fabling & Lynda Sanderson, 2014. "Productivity distributions in New Zealand: The dangers of international comparison," Working Papers 14_16, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:14_16
    as

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    File URL: https://motu-www.motu.org.nz/wpapers/14_16.pdf
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    References listed on IDEAS

    as
    1. Chad Syverson, 2004. "Product Substitutability and Productivity Dispersion," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 534-550, May.
    2. Richard Fabling & David C Maré, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Working Papers 15_15, Motu Economic and Public Policy Research.
    3. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    4. Richard Fabling & David C Maré, 2015. "Addressing the absence of hours information in linked employer-employee data," Working Papers 15_17, Motu Economic and Public Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Richard Fabling & David C Maré, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Working Papers 15_15, Motu Economic and Public Policy Research.
    2. Fabling Richard & David Maré, 2024. "Pay in M?ori-led firms," Working Papers 24_05, Motu Economic and Public Policy Research.
    3. Eyal Apatov & Richard Fabling & Adam B Jaffe & Michele Morris & Matt Thirkettle, 2015. "Agricultural productivity in New Zealand: First estimates from the Longitudinal Business Database," Working Papers 15_13, Motu Economic and Public Policy Research.
    4. Guanyu Zheng, 2016. "Geographic proximity and productivity convergence across New Zealand firms," Working Papers 2016/04, New Zealand Productivity Commission.
    5. Richard Fabling & David C. Maré, 2019. "Improved productivity measurement in New Zealand's Longitudinal Business Database," Working Papers 19_03, Motu Economic and Public Policy Research.
    6. Richard Fabling & David C Maré, 2015. "Addressing the absence of hours information in linked employer-employee data," Working Papers 15_17, Motu Economic and Public Policy Research.
    7. Richard Fabling, 2018. "Entrepreneurial beginnings: Transitions to self-employment and the creation of jobs," Working Papers 18_12, Motu Economic and Public Policy Research.
    8. Richard Fabling, 2021. "Living on the edge: An anatomy of New Zealand’s most productive firms," Working Papers 21_01, Motu Economic and Public Policy Research.

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    More about this item

    Keywords

    Multifactor productivity (MFP); Dispersion;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    NEP fields

    This paper has been announced in the following NEP Reports:

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