 Sources of growth and output gaps in New Zealand: New methods and evidenceKevin Fox, Ulrich Kohli and Ronald Warren New Zealand Economic Papers, 2003, vol. 37, issue 1, 67-92 Abstract: We extend Fox, Kohli, and Warren (2002) by using alternative techniques to re-examine the sources of New Zealand's macroeconomic performance during the period 1983-2001. Specifically, a modified Diewert-Morrison decomposition is used to quantify the separate contributions from productivity growth and changes in factor utilization, the terms of trade and the trade balance to GDP growth. We also use a new Fisher-index decomposition to analyze the determinants of GDP growth. These techniques are adapted to identify sources of deviations of GDP from its trend. The results of these decompositions reveal that changes in domestic prices accounted for three-fifths of the growth of nominal GDP over the entire sample period. Capital accumulation and employment growth were wholly responsible for the real-output growth in this time frame. However, changes in total-factor productivity or in the terms of trade contributed importantly to changes in real net output and in an index of aggregate welfare in specific years. Finally, no one factor was primarily responsible for explaining changes in the nominal (or real) output gap over the whole period. Date: 2003 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:nzecpp:v:37:y:2003:i:1:p:67-92 Ordering information: This journal article can be ordered from DOI: 10.1080/00779950309544379 Access Statistics for this article New Zealand Economic Papers is currently edited by Dennis Wesselbaum More articles in New Zealand Economic Papers from Taylor & Francis Journals |
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