The New Zealand Institute

No country is an island: Moving the New Zealand economy forward by taking it to the world

By David Skilling & Danielle Boven - 14 Nov 2005

Overview

The New Zealand economy has performed well over the past 15 years, with economic growth rates that exceed those generated in previous decades and that compare well against the US and Australia. The challenge now is to build on this good performance, so that New Zealand's income levels converge to those of other developed countries.

But some of the key drivers of growth over the past decade are not likely to be able to be repeated over the coming decades. Sustaining high rates of economic growth into the future will necessarily involve a substantial increase in labour productivity growth.

This report identifies increased exporting and international investment by New Zealand firms as a key priority in achieving faster productivity growth. The report describes the link between international engagement and the drivers of labour productivity growth, and surveys the evidence on the link between international engagement and productivity for both countries and individual firms.

The message is that increased international economic activity needs to be a key part of a strategy to raise New Zealand's economic growth rate into the future.

> Executive summary (260kb PDF)

> Full report (840kb PDF)

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