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Third Way Economic Management in New Zealand

Published online by Cambridge University Press:  01 January 2023

Paul Dalziel
Paul Dalziel*
Affiliation:
Lincoln University
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Abstract

The article explains why a ‘Third Way’ for economic management has become important in New Zealand. Economic growth fell sharply compared to Australia after 1984, due to a slow-down in New Zealand’s labour productivity growth after 1991. The paper argues this was partially the result of a neglected aspect of economic management during the 1984–94 decade of economic reform: fostering domestic physical capital formation. The third way differs from both the approach adopted prior to 1984 and the approach adopted during New Zealand’s reforms, based on government involvement, but not direct intervention, in industry and regional development.

Type
Meeting Report
Information
The Economic and Labour Relations Review , Volume 12 , Issue 2 , December 2001 , pp. 193 - 207
Copyright
Copyright © The Author(s) 2001

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Footnotes

*

This paper is based on invited presentations to the New Zealand Treasury in Wellington on 14 November 2000, to a conference on the Third Way at the Centre for Applied Economic Research at the University of New South Wales in Sydney, 12–13 July 2001, and to a seminar organised by the Structural Issues Team of HM Treasury in London on 23 November 2001. I am grateful to participants on all occasions for helpful comments and suggestions, and I thank my former colleagues in the Department of Economics at the University of Canterbury, and Professor Jonathan Boston for many stimulating discussions on the topic. I am particularly grateful to John Nevile and an anonymous referee for insightful observations that have improved the clarity of the arguments in this paper. The usual caveats apply.

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