Filling in NZ’s productivity data gaps

Embargoed until: Publicly released: 2024-12-18 09:23

New Zealand

PHOTO: Ian Dooley/Unsplash

Productivity growth is an important factor in understanding the economy, but researchers point out that one of the key databases used to measure it doesn’t have all the data needed. A researcher has developed a method to fill these data gaps using an additional data source – firm-level annualised goods and services tax (GST) returns. The researcher says the resulting “complete” productivity dataset provides an additional way for researchers to study businesses that were previously underrepresented in the productivity data.

Media release

From: Motu Economic and Public Policy Research Trust

Productivity data is missing from the Longitudinal Business Database (LBD) for over a third of firm-year observations in “measured sector” industries, equating to a fifth of total labour in those industries.

We develop a method to fill these data gaps using an additional (third) data source – firm-level annualised goods and services tax (GST) returns.

Coupled with additional modelling using full-coverage employment information, the resulting “complete” productivity dataset provides additional avenues for researchers to test the robustness of their results to the inclusion of firm types previously underrepresented in the productivity data – particularly new and owner-operated firms.

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Research Motu Economic and Public Policy Research Trust, Web page

Journal/
conference: Motu Working Paper

Research:Paper

Organisation/s: Motu Economic and Public Policy Research Trust

Funder: New Zealand Productivity Commission

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