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Figure 1: The Ministry's Productivity Model - Long Description


This Document is Archived


Statement of Intent 2003-2006

[ Last Updated 18 January 2006 ]


» Graphical depiction of Figure 1

Note: Bold text denote issues addressed by MED strategic priorities.

Immediate Causes of Productivity

  • Technological advance
  • Accumulation and use of:
    • Human capital
    • Physical capital
  • Firm organisation, and management/work practices
  • Scale, scope and specialisation
  • Resource (re)allocation
  • Plant/firm turnover within industries

Social Influences

  • Cultural support for enterprise
  • Social cohesion and capability

Government Influences

The creation of services, regulations, institutions, and a policy environment that are:

  • Supportive of trade, innovation and entrepreneurship
  • Aligned across government
  • Low cost, while maximising the net benefits to the community as a whole

Underlying Factors Influenced by Government

Areas of focus for MED

  • Innovation and entrepreneurial performance
  • International commerce, and inbound investment and knowledge transfer
  • Availability of appropriate infrastructure
  • An open, competitive economy
  • Dynamic, effective and transparent markets
  • Confident investors and consumers

Other important factors include:

  • Quantity/quality of available human capital
  • Sustainable environmental management
  • Taxation and other incentives for business
  • Macro-economic stability

Interactions

Social Influences interact with and influence Immediate Causes of Productivity and Underlying Factors Influenced by Government.

Government Influences interact with and influence Immediate Causes of Productivity, Social Influences and Underlying Factors Influenced by Government.

Underlying Factors Influenced by Government interact with and influence Immediate Causes of Productivity.

» Graphical depiction of Figure 1


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