New Zealand productivity was ontogeny much more slowly than the most early(a) countries. behind key address in reverse to poor productivity growth is the most significant task ahead. The main trade industries had been in recession for five years. So far, the export little as a percentage of GDP than most other OECD countries. Over 90% of exports come from just under 5 per cent of exporters. There were six policy areas that government was concentrate including regulatory reform, investment in infrastructure, better public services, fostering and skills, innovation and business assistance, and a world class revenue enhancement system. In addition, Keys centre on all the component move that can make New Zealand more productive, a stronger export nation with high wages.
My analysis and interpretation of this article is focus on productivity and the government policy in relation to economic growth and catch up theory.
Productivity is a measure of the efficiency of instrument of toil in the production process. It measures the output we experience from a given amount of factor inputs.
A higher productivity means that we can evoke more goods and services at a lower comprise per unit. This will help to reduce prices and increase consumer welfare. The increasing of score output from our scarce factor resource causing an outbound shift on the PPF. The benefit of higher productivity leads to higher real wages and long run economic growth. under(a) higher real wages, in the long run, there is a positive relationship between improvements in labour productivity and the real wages. This further boosts growth will lead to higher spending. Long run economic growth means that our strength to produce goods and services depends on the stock of factor resources usable such as the active labour supply, the stock...If you want to get a full essay, order it on our website: Orderessay
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