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5.1  Capital stocks and capital-labour ratios (continued)

Disaggregation of productive capital stocks by asset-type shows that, across market sectors as a whole, New Zealand makes less intensive use of each different type of capital and - with the exception of vehicles in the late 1990s - this has been the case throughout 1995-2004 (Table 6). The less intensive use of computers and intangibles in New Zealand suggests that, if the capital stock indices were weighted by their shares in total user costs to yield a measure of capital services per hour worked, the New Zealand-UK gap on this measure would be even greater than on the capital stocks measure. [12]

Table 6 - Average physical capital per hour worked in aggregate market sectors, analysed by capital asset-type, New Zealand/UK, 1995-2004 (Index numbers: UK=1.00)
  Structures Non-ICT equipment Vehicles Computers Intangibles Total capital
1995 0.78 0.70 1.01 0.56 0.71 0.78
1996 0.76 0.71 1.01 0.58 0.68 0.77
1997 0.77 0.74 1.05 0.65 0.63 0.79
1998 0.76 0.74 1.01 0.59 0.58 0.77
1999 0.73 0.72 0.96 0.56 0.57 0.74
2000 0.73 0.72 0.94 0.50 0.56 0.73
2001 0.72 0.73 0.90 0.48 0.54 0.72
2002 0.69 0.72 0.84 0.46 0.52 0.69
2003 0.68 0.72 0.85 0.48 0.53 0.69
2004 0.66 0.71 0.86 0.54 0.53 0.68

Again, disaggregation by sector for a recent year highlights some interesting variation beneath the aggregate results (Table 7). Four sectors in New Zealand do make more intensive use of computers than their UK counterparts: agriculture, forestry and fishing, mining, construction and cultural and recreational services. The two primary sectors also make more intensive use of intangibles (but in mining the disparity is so great as to suggest that there are marked differences between the two countries in the way that investments in intangibles in this industry are recorded). There are several sectors where New Zealand has accumulated (proportionately) more investments in structures and/or vehicles than in the UK and rather fewer where NZ is ahead in terms of investments in non-ICT machinery and equipment. The exceptions to this observation are wood and paper product manufacturing, transport services, communication services and cultural and recreational services which do make more intensive use of non-ICT equipment.

Table 7 - Average physical capital per hour worked in market sectors, analysed by capital asset-type, New Zealand/UK, 2002 (Index numbers: UK=1.00)
    Structures Non-ICT equipment Vehicles Computers Intangibles Total capital
AA, AB, AC Agriculture, forestry and fishing 0.27 0.26 1.80 11.57 3.13 0.33
BA Mining 0.31 0.38 1.58 2.06 21.38 0.41
CA Food, beverage and tobacco manufacturing 0.88 0.88 0.68 0.46 0.30 0.85
CB Textile and apparel manufacturing 0.76 0.50 0.78 0.30 0.41 0.58
CC Wood and paper product manufacturing 1.23 1.51 0.87 0.33 0.97 1.37
CD Printing, publishing and recorded media 0.95 0.75 0.86 0.87 0.66 0.80
CE Petroleum, chemical, plastic and rubber product manufacturing 0.70 0.60 1.20 0.44 0.33 0.63
CF Non-metallic mineral product manufacturing 1.23 0.52 4.37 0.54 0.24 0.75
CG Metal product manufacturing 1.23 0.83 1.62 0.61 0.58 0.96
CH Machinery and equipment manufacturing 0.53 0.33 2.02 0.28 0.48 0.41
CI Furniture and other manufacturing 1.14 0.46 0.80 0.47 0.37 0.65
DA Electricity, gas and water supply 2.45 0.32 0.74 0.76 0.08 1.10
EA Construction 1.50 0.98 2.18 1.50 0.56 1.37
FA Wholesale trade 0.86 0.68 1.03 0.63 0.47 0.75
GA Retail trade 0.23 0.58 0.96 0.52 0.47 0.37
HA Accommodation, restaurants and bars 0.45 0.84 1.73 0.29 0.17 0.54
IA Transport and storage 0.50 1.01 0.79 0.24 0.50 0.67
JA Communication services 4.42 1.77 0.84 0.63 2.85 2.29
KA Finance and insurance 0.29 0.71 1.37 0.57 1.05 0.56
LC Business services 0.66 0.63 0.36 0.54 0.90 0.59
PA Cultural and recreational services 0.36 1.70 0.56 1.66 0.38 0.58
  Total market sectors 0.69 0.72 0.84 0.46 0.52 0.69

Notes

  • [12]This is because investment in short-lived ICT products which are subject to rapid price declines can typically only be justified by their higher productivity (hence higher shares of total user costs) relative to capital assets with longer service lives.
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