3  Data

To form aggregate and industry productivity series for the market sector of the New Zealand economy, data are needed on the values and volumes of output, labour and capital. Appendix 1 documents the data sources and describes how data have been transformed for use in constructing productivity series. Appendix Table 1 shows which industries are included in the markets sector of the New Zealand economy. What follows is a brief discussion of the data used in producing productivity series for the New Zealand economy.

In 2000, Statistics New Zealand introduced an upgraded set of National Accounts based on the System of National Accounts 1993 (SNA93) accounting standards; re-benchmarked using the 1995/96 Inter-Industry Study; introduced the Australia and New Zealand System of Industrial Classification (ANZSIC); and introduced productive capital stock series intended for use in New Zealand productivity studies. Changes in the upgraded national accounts were backdated to 1987. The introduction of upgraded national accounts has aided considerably in constructing productivity series for the New Zealand economy, especially with the introduction of official productive capital stock series and improvements in the accuracy of the GDP accounts.

Data on the values and volumes of output, labour and capital were sourced from Statistics New Zealand. Annual industry nominal and volume GDP were drawn from the industry income and production GDP accounts. Annual industry hours worked data were obtained from Statistics New Zealand’s Household Labour Force Survey (HLFS), and industry capital stock data were sourced from Statistics New Zealand’s productive capital stock series. Industry labour and capital cost series were constructed using industry compensation of employees and operating surplus data taken from Statistics New Zealand’s income GDP accounts. Industry compensation of employees data were also adjusted to account for sole proprietors’ labour income being classified as operating surplus in the System of National Accounts.

This paper measures productivity in the market sector of the New Zealand economy (which was around 85% of GDP in the year to March 2002). Industries excluded from the market sector are: Central government administration and defence; Local government services; and Ownership of owner occupied dwellings. The level of industry disaggregation for which market sector productivity series can be constructed is determined by the industry hours worked data.[5] Compared with the production and income GDP accounts and the capital stock data, ANZSIC industry hours worked data are constructed at a more aggregate level. Therefore, even though data on production and income GDP (compensation of employees and operating surplus) and the capital stock are available for 31 industries (ie, at the two digit industry level), hours worked data are only available for a more aggregated nine industries (ie, at the one digit industry level). This made it necessary to form one digit industry level aggregate industry output and capital series using data on production and income GDP and the capital stock at the two digit level in order to approximate the ANZSIC industry hours worked level of industry disaggregation as closely as possible.