Recent great depressions: Aggregate growth in New Zealand and Switzerland, 1973–2000

Kehoe, Timothy J.; Ruhl, Kim J.

doi:10.1080/00779950309544377

Cited by 19 publications

(9 citation statements)

References 21 publications

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“…Sluggish productivity growth in New Zealand has persisted for decades (Hall, 1996;Kehoe and Ruhl, 2003). Perhaps it is finally a thing of the past.…”

Section: Markets Are Doing Their Jobmentioning

confidence: 97%

Quantifying creative destruction: Entrepreneurship and productivity in New Zealand

McMillan¹

2004

New Zealand Economic Papers

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This paper (a) provides a framework for quantifying any economy's flexibility, and (b) reviews the evidence on New Zealand firms' birth, growth and death. The data indicate that, by and large, the labour market and the financial market are doing their job. Creative destruction “revolutionizes the economic structure from within,” Joseph Schumpeter famously said, “incessantly destroying the old one, incessantly creating a new one” (Schumpeter, 1975, p. 83). Innovation in business - bringing new goods, new markets, new methods of production, new ways of organizing firms - is the “fundamental impulse that sets and keeps the capitalist engine in motion.” Does the economy have enough flexibility? Are there barriers in the way of entrepreneurship? This paper develops a framework for quantifying creative destruction. Applying the framework to New Zealand, I conclude that the sluggish productivity growth of the past fifteen years cannot be blamed on economic rigidities. The data depict an economy with ample creative destruction. Ascribing New Zealand's slow growth to a business-unfriendly culture is a misdiagnosis.

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“…Sluggish productivity growth in New Zealand has persisted for decades (Hall, 1996;Kehoe and Ruhl, 2003). Perhaps it is finally a thing of the past.…”

Section: Markets Are Doing Their Jobmentioning

confidence: 97%

Quantifying creative destruction: Entrepreneurship and productivity in New Zealand

McMillan¹

2004

New Zealand Economic Papers

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“…Subsequent papers took different definitions of intensive and extensive margins, that is, they estimated changes in average exports per product, the number of products being exported per firm, etc. Studies that account for the intensive and extensive margins show that trade liberalisation does not just intensifies existing trade but also causes significant adjustments along the extensive margins (Foster et al, 2011;Markusen, 2013), resulting in greater export/import product variety (Kehoe and Ruhl, 2003;Feenstra and Kee, 2007;Goldberg et al, 2008) and establishing trade relations with new partners (Felbermayr and Kohler, 2007). Further, by focusing on the timing between signing of the integration agreement and its effects on trade margins Baier et al (2014) showed that intensive margin effects occurs sooner than extensive margin ones (number of products exported).…”

Section: Literature Reviewmentioning

confidence: 99%

The Role of Regional Economic Integrations for Trade Margins: A Case of Croatia

Kejžar¹,

Kostevc²,

Zaninović³

2016

Zb.rad.Ekon.fak.Rij.

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“…Our accounting results in section 2 suggest that most of West Bengal's relative decline in manufacturing and services productivity is due to TFP, however. 15 The usual practise in exercises like these is to look for specific policies that could have caused these Hence, examining stated policies across states in India often doesn't reveal the true picture. Thus, even though Besley and Burgess (2004) found that West Bengal was the state with the highest number of prolabor changes in labor regulations, they ended up classifying both West Bengal and Maharashtra as being pro-labor.…”

Section: Proximate Explanationmentioning

confidence: 99%

“…Indeed, even looking at the cross-country income data it is hard to find similar cases. As pointed out by Kehoe and Ruhl (2003), there are a couple of cases like New Zealand and Switzerland which showed 40 percent declines in per capita incomes relative to the USA between 1960 and 2000. However, New Zealand (4 million people in 2000) and Switzerland (7 million) are tiny when compared with West Bengal (80 million) and Maharashtra (97 million).…”

mentioning

confidence: 99%

A tale of two states: Maharashtra and West Bengal

Lahiri

2009

Review of Economic Dynamics

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In this paper we study the economic evolution between 1960 and 1995 of two states in India -Maharashtra and West Bengal. During this period West Bengal, which was one of the two richest states in India in 1960, has gone from a relative per capita income of about 105 percent of Maharashtra to a relative income of around 69 percent. Our diagnostic analysis reveals that a large part of the blame for West Bengal's development woes can be attributed to: (a) low aggregate productivity (b) poorly functioning labor markets and sectoral misallocations. We find that sectoral productivity and labor market allocation wedges were strongly correlated with political developments in West Bengal, namely the increasing vote share of the leftist parties.

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Recent great depressions: Aggregate growth in New Zealand and Switzerland, 1973–2000

Cited by 19 publications

References 21 publications

Quantifying creative destruction: Entrepreneurship and productivity in New Zealand

Quantifying creative destruction: Entrepreneurship and productivity in New Zealand

The Role of Regional Economic Integrations for Trade Margins: A Case of Croatia

A tale of two states: Maharashtra and West Bengal

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