From a new paper by the Productivity Commission on why New Zealand industries lag behind Australia, published – you might even say ‘dumped’ – on the Thursday before Christmas. Sent in by a reader (let me emphasise that I was not reading Productivity Commission reports over the summer break).
. . . the majority of the gap is due to productivity differences in the same industry across the two countries. Across most industries, Australian firms have invested more in capital while New Zealand firms do not use capital and labour as effectively as in Australia.