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Firm dynamics and job creation: revisiting the perpetual motion machine


New Zealand Productivity Commission

Date published

14 February 2019

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This paper presents analyses of firm dynamics in New Zealand. The purpose of the analysis is to revisit the findings of Meehan and Zheng (2015), to see if firm dynamics have changed since that study.

The dynamics of “digital” firms have also been investigated – firms in industries that produce digital and communications technologies or support their use by other firms and consumers, or produce and sell digital content and media.

Number  2019/1


Productivity growth

The goal of our research is to facilitate a move from an economy that grows by using more “inputs” (such as labour or natural resources), to one where productivity plays a greater role in driving economic growth – essentially, working smarter, with greater financial and knowledge capital employed per worker.

Our research explores a wide range of productivity issues: employment, firm dynamics, technology diffusion, innovation, regional development, spatial and public-sector productivity.

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