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Some Rise by Sin, and Some by Virtue Fall: Firm Dynamics, Market Structure and Performance

Author

Listed:
  • Fabling, Richard

    (Reserve Bank of New Zealand)

  • Grimes, Arthur

    (Motu Economic & Public Policy Research)

  • Sanderson , Lynda

    (Ministry of Economic Development, New Zealand)

  • Stevens, Philip

    (Ministry of Economic Development, New Zealand)

Abstract

This paper investigates the microeconomic dynamics of the New Zealand economy using a powerful new SNZ-held dataset. For the first time, tax data covering operating performance and position (IR10), company income declarations (IR4) and sales & purchases (GST) have been combined with firm-level (LEED) employment data and Customs merchandise trade data to create a full coverage Longitudinal Business Database (LBD). We use this data to expand the available set of firm performance measures to include multi-factor productivity, profitability and export intensity. These and other performance variables are used to examine the distribution and dynamic of New Zealand firm performance, focussing on the characteristics of firms that display superior or inferior firm-level outcomes.

Suggested Citation

  • Fabling, Richard & Grimes, Arthur & Sanderson , Lynda & Stevens, Philip, 2008. "Some Rise by Sin, and Some by Virtue Fall: Firm Dynamics, Market Structure and Performance," Occasional Papers 08/1, Ministry of Economic Development, New Zealand.
    • Handle: RePEc:ris:nzmedo:2008_001
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    References listed on IDEAS

    as
    1. David C. Maré & Jason Timmins, 2006. "Geographic concentration and firm productivity," Working Papers 06_08, Motu Economic and Public Policy Research.
    2. David Law & Bob Buckle & Dean Hyslop, 2006. "Toward a Model of Firm Productivity Dynamics," Treasury Working Paper Series 06/11, New Zealand Treasury.
    3. David Law & Nathan McLellan, 2005. "The Contributions from Firm Entry, Exit and Continuation to Labour Productivity Growth in New Zealand," Treasury Working Paper Series 05/01, New Zealand Treasury.
    4. Andrew B. Bernard & J. Bradford Jensen, 1999. "Exporting and Productivity," NBER Working Papers 7135, National Bureau of Economic Research, Inc.
    5. Baldwin, John R. Gu, Wulong, 2006. "Competition, Firm Turnover and Productivity Growth," Economic Analysis (EA) Research Paper Series 2006042e, Statistics Canada, Analytical Studies Branch.
    6. Stefano Scarpetta & Philip Hemmings & Thierry Tressel & Jaejoon Woo, 2002. "The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data," OECD Economics Department Working Papers 329, OECD Publishing.
    7. 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.
    8. Sanghoon Ahn, 2001. "Firm Dynamics and Productivity Growth: A Review of Micro Evidence from OECD Countries," OECD Economics Department Working Papers 297, OECD Publishing.
    9. Haskel, Jonathan & Bartelsman, Eric J & Martin, Ralf, 2008. "Distance to Which Frontier? Evidence on Productivity Convergence from International Firm-level Data," CEPR Discussion Papers 7032, C.E.P.R. Discussion Papers.
    10. Fabling, Richard & Grimes, Arthur & Stevens, Philip, 2008. "A Comparison of Qualitative and Quantitative Firm Performance Measures," Occasional Papers 08/4, Ministry of Economic Development, New Zealand.
    11. Geoff Simmons, 2002. "Growing Pains: New Zealand Qualitative Evidence on Hurdles to Exporting Growth," Treasury Working Paper Series 02/10, New Zealand Treasury.
    12. Fabling, Richard & Sanderson, Lynda, 2008. "Firm Level Patterns in Merchandise Trade," Occasional Papers 08/3, Ministry of Economic Development, New Zealand.
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    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 & Grimes, Arthur, 2008. "Do Exporters Cut the Hedge? Who Hedges, When and Why?," Occasional Papers 08/2, Ministry of Economic Development, New Zealand.
    3. Fabling, Richard & Grimes, Arthur & Stevens, Philip, 2008. "A Comparison of Qualitative and Quantitative Firm Performance Measures," Occasional Papers 08/4, Ministry of Economic Development, New Zealand.
    4. Adam Jaffe & Nathan Chappell, 2018. "Worker flows, entry, and productivity in New Zealand’s construction industry," Working Papers 18_02, Motu Economic and Public Policy Research.
    5. Fabling, Richard & Grimes, Arthur, 2010. "Cutting the hedge: Exporters' dynamic currency hedging behaviour," Pacific-Basin Finance Journal, Elsevier, vol. 18(3), pages 241-253, June.
    6. Mok, Penny & Mason, Geoff & Stevens, Philip & Timmins, Jason, 2012. "A Good Worker is Hard to Find: Skills Shortages in New Zealand Firms," Occasional Papers 12/5, Ministry of Economic Development, New Zealand.
    7. Fabling, Richard & Sanderson, Lynda, 2008. "Firm Level Patterns in Merchandise Trade," Occasional Papers 08/3, Ministry of Economic Development, New Zealand.
    8. Bartleet, Matthew & Iyer, Kris & Numan-Parsons, Elisabeth, 2010. "Emission intensity in New Zealand manufacturing and the short-run impacts of emissions pricing," Energy Policy, Elsevier, vol. 38(12), pages 7756-7763, December.

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    More about this item

    Keywords

    firm dynamics; productivity; profitability; exporting; foreign ownership;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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