An Empirical Investigation of sectoral-Level Capital Investments in New Zealand

Weshah Razzak

No 14/04, Treasury Working Paper Series from New Zealand Treasury

Abstract: I extend the Glick and Rogoff (1995) aggregate time-series, empirical, intertemporal model of country-investment (and the current account) to a sectoral-level, and estimate it for New Zealand. I fit the model to panel data of eleven industries from 1988-2009. The sectoral-level investment growth is a function of lagged investment level, sector-specific TFP shocks, country-specific TFP shocks, and global TFP shocks. The estimates seem robust to government spending shocks and Terms of Trade shocks.

Keywords: Investments; sectoral-level; TFP shocks; panel data (search for similar items in EconPapers)
JEL-codes: C2 C3 E2 (search for similar items in EconPapers)
Pages: 29
Date: 2014-02
New Economics Papers: this item is included in nep-mac
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