Selected Issues Papers

Weak productivity growth continues to pose a challenge for New Zealand’s long-term economic prospects. Hindered by a remote geography and large agriculture and tourism sectors, slow aggregate productivity growth also reflects costs and incentives for investment and innovation, features of the business environment, and availability of financing options. Young, high growth firms appear to face financing challenges, while competition, innovation, and technological diffusion are low across sectors. The current juncture, with a nascent economic recovery underway, presents an opportunity for a multi-pronged reform agenda to address this productivity challenge.