Productivity is how economists measure the efficiency with which resources such as labour, capital and land are used to produce goods and services. If our productivity rises we increase the well-being of our citizens, and can better pursue social goals such as protecting the environment.
New Zealand used to have one of the highest standards of living in the world. Over the last twenty years or so, however, we have slipped and now rank around 21st in the OECD. Our productivity is higher than it was, but has not increased as quickly as other countries and our income growth has been slower. In this section we look at how New Zealand can improve its productivity and consequently its well-being.
Motu studies the sources of productivity improvement and innovation at the level of firms, industries and regions.
Motu’s current and recent research includes:
NZ Productivity Hub,
Tertiary Education Commission