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Publication Details

  • An Empirical Study of Industry-Level Capital Investments in New Zealand
  • Published: 18 Feb 2014
  • Status: Current
  • Author: Razzak, Weshah
  • Pages: (2),iii,24
  • ISBN: 978-0-478-42114-9 (Online)
  • Ref. No: WP 14/04
  • Pub. type: Working Papers
  • JEL Classification: C2; C3; E2

An Empirical Study of Sectoral-Level Capital Investments in New Zealand

Published 18 Feb 2014

Author: Weshah Razzak


I extend the Glick and Rogoff (1995) aggregate time-series, empirical, intertemporal model of country-investment (and the current account) to a sectoral-level, and estimate it for New Zealand. I fit the model to panel data of eleven industries from 1988-2009. The sectoral-level investment growth is a function of lagged investment level, sector-specific TFP shocks, country-specific TFP shocks, and global TFP shocks. The estimates seem robust to government spending shocks and Terms of Trade shocks..


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Executive Summary

1 Introduction

2 The Model

3 Data

4 Estimation and results

5 Conclusions and Policy Issues


twp14-04.pdf (274 KB) pp. (2),i-iii,1-24


I would like to thank Ellen Shields, Peter Gardiner, Nicholas Warmke, Mario DiMaio, Grant Scobie, Gerald Minnee, Michael Ryan, Dimitri Margaritis and Enzo Cassino for their contributions to this paper. I also thank Steven Stillman for his advice on panel data estimation.


The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury or the New Zealand Government. The New Zealand Treasury and the New Zealand Government take no responsibility for any errors or omissions in, or for the correctness of, the information contained in these working papers. The paper is presented not as policy, but with a view to inform and stimulate wider debate.

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