Ministry of Economic Development Home| Contact MED|


Jump to Site Navigation Links
 
 
 

Links to this page were:

Section Subnavigation Links:

8. Tables*


08/01: Some Rise by Sin, and Some by Virtue Fall: Firm Dynamics, Market Structure and Performance

Richard Fabling (Reserve Bank of New Zealand), Arthur Grimes (Motu Economic & Public Policy Research), Lynda Sanderson (Ministry of Economic Development), Philip Stevens (Ministry of Economic Development)
[ Last Updated 14 March 2008 ]


*All results presented here are derived by the authors from the LBD

Table 1: Counts of Economically Active, Entering & Exiting Firms by Year
Year Economically active firms Firms that entered Firms that exited
2000 442,176 --- ---
2001 456,050 51,802 37,928
2002 458,775 50,521 47,796
2003 468,497 56,342 46,620
2004 481,637 58,954 45,814
2005 490,368 56,561 47,830

Table 2: Patterns of Economic Activity
Pattern* Firms Pattern Firms Pattern Firms Pattern Firms
Continuous spells
.....X 47,202 ..X... 2,417 .XXX.. 4,413 XXXX.. 27,682
....X. 2,730 ..XX.. 3,895 .XXXX. 4,205 XXXXX. 27,021
....XX 47,809 ..XXX. 4,737 .XXXXX 31,368 XXXXXX 268,392
...X.. 2,307 ..XXXX 33,841 X..... 29,824
...XX. 4,863 .X.... 4,039 XX.... 35,218
...XXX 41,671 .XX... 4,442 XXX... 31,480 TOTAL 659,556
Spells with gaps
...X.X 646 .X.XXX 579 X..XXX 979 XX..XX 1,204
..X..X 284 .XX..X 307 X.X... 1,147 XX.X.. 1,221
..X.X. 204 .XX.X. 239 X.X..X 83 XX.X.X 203
..X.XX 470 .XX.XX 513 X.X.X. 79 XX.XX. 641
..XX.X 519 .XXX.X 528 X.X.XX 133 XX.XXX 1,894
.X...X 245 X....X 860 X.XX.. 567 XXX..X 1,486
.X..X. 125 X...X. 343 X.XX.X 110 XXX.X. 1,239
.X..XX 340 X...XX 889 X.XXX. 407 XXX.XX 2,097
.X.X.. 249 X..X.. 474 X.XXXX 1,628 XXXX.X 2,842
.X.X.X 65 X..X.X 93 XX...X 1,088
.X.XX. 145 X..XX. 312 XX..X. 540 TOTAL 28,017

* An "X" denotes economic activity in the year. For example a firm that experienced a single continuous period of economic activity from 2001-2003 would be represented by ".XXX.."

Table 3: Variable Coverage Rates by Source and Total Employment
Size (total employment) BAI IR10 IR4 Positive value-added Labour prod MFP
Zero employment 92.2% 51.5% 38.1% 25.6%
0< employment <=5 95.3% 79.4% 24.7% 60.3% 60.3% 52.7%
5< employment <=20 99.3% 75.2% 64.9% 71.3% 71.3% 67.4%
>20 employment 98.9% 59.7% 75.4% 57.1% 57.1% 53.8%
OVERALL 94.8% 70.8% 32.6% 51.2% 43.9% 38.8%

Table 4: Variable Coverage Rates by Source and Industry
ANZSIC BAI IR10 IR4 Pos. value-added Pos. total employ Labour prod MFP
A Agriculture, forestry & fishing 97.1% 73.8% 13.5% 46.8% 80.5% 42.8% 39.8%
B Mining 97.8% 60.9% 56.6% 38.3% 59.2% 31.7% 26.7%
C Manufacturing 96.5% 70.3% 47.4% 56.7% 79.8% 52.5% 47.8%
Δ Electricity, gas & water 93.9% 60.4% 52.5% 36.7% 47.8% 22.8% 20.2%
E Construction 95.1% 70.8% 30.2% 58.7% 80.2% 54.9% 48.8%
F Wholesale trade 97.2% 67.8% 55.8% 49.3% 67.1% 41.3% 36.7%
G Retail trade 96.2% 71.5% 38.8% 55.2% 79.9% 51.6% 46.2%
H Accom., cafes & restaurants 96.1% 68.5% 40.3% 50.6% 79.0% 47.4% 41.9%
I Transport & storage 95.9% 71.0% 35.6% 52.8% 77.5% 48.3% 41.9%
J Communication services 95.4% 67.8% 13.5% 55.3% 78.6% 52.7% 44.3%
K Finance & insurance 69.8% 71.7% 63.2% 29.0% 47.5% 20.6% 17.2%
L Property & business services 93.6% 68.7% 36.2% 48.8% 54.6% 33.9% 28.3%
N Education 91.3% 73.2% 38.2% 53.9% 78.1% 49.2% 42.6%
O Health & community services 94.6% 74.6% 27.8% 63.6% 86.3% 61.0% 52.6%
P Cultural & rec. services 93.0% 69.2% 29.1% 47.2% 67.1% 39.5% 34.0%
Q Personal & other services 92.9% 73.4% 24.4% 57.2% 82.9% 54.4% 48.0%

Table 5: Decomposition of Count of Observations of Labour Productivity & MFP
% of total
Total firm-year observations 2,797,503 100.0%
With positive total employment 1,999,171 71.5%
& BAI sales/purchases data 1,915,663 68.5%
& IR10 stocks data 1,497,202 53.5%
& positive value-added 1,228,322 43.9%
Labour productivity firm-year observations 1,228,322 43.9%
With positive depreciation costs 1,085,578 38.8%
MFP firm-year observations 1,085,578 38.8%

Table 6: Correlation Between LFPD and AES Postal Survey Value-Added by Industry, All Years Pooled
Pearson Spearman rank
ANZSIC Level 1yr D 4yr D Level 1yr D 4yr D
A Agriculture, forestry & fishing 0.8442*
(1,482 obs) 		0.2592*
(764 obs) 		-0.0105
(104 obs) 		0.8639* 0.3609* 0.0336
B Mining 0.9008*
(763 obs) 		0.3248*
(432 obs) 		0.0637
(79 obs) 		0.9183* 0.4054* 0.1231
C Manufacturing 0.9285*
(7,173 obs) 		0.3244*
(4,354 obs) 		0.3247*
(836 obs) 		0.9516* 0.3821* 0.3405*
D Electricity, gas & water 0.8125*
(158 obs) 		0.6181*
(72 obs) 		0.0173
(<20 obs) 		0.8243* 0.4923* -0.0286
E Construction 0.8853*
(4,051 obs) 		0.3058*
(2,189 obs) 		0.3090*
(318 obs) 		0.8976* 0.3837* 0.3108*
F Wholesale trade 0.8485*
(4,661 obs) 		0.2600*
(2,559 obs) 		0.2078*
(393 obs) 		0.8846* 0.2856* 0.2389*
G Retail trade 0.9068*
(5,934 obs) 		0.2424*
(3,539 obs) 		0.2060*
(619 obs) 		0.9242* 0.3148* 0.2283*
H Accom., cafes & restaurants 0.9142*
(1,060 obs) 		0.2886*
(549 obs) 		-0.0910
(56 obs) 		0.9302* 0.3374* 0.0775
I Transport & storage 0.7747*
(2,119 obs) 		0.2230*
(1,190 obs) 		0.2538*
(189 obs) 		0.7924* 0.3168* 0.2503*
J Communication services 0.8957*
(109 obs) 		0.4952*
(56 obs) 		0.3505
(<20 obs) 		0.9024* 0.5504* 0.4762
K Finance & insurance 0.6227*
(2,503 obs) 		0.1907*
(1,204 obs) 		0.3084*
(155 obs) 		0.7195* 0.2706* 0.2104*
L Property & business services 0.8503*
(8,032 obs) 		0.2943*
(4,063 obs) 		0.3511*
(539 obs) 		0.8790* 0.4302* 0.3986*
N Education 0.7946
(1,216 obs) 		0.2866*
(626 obs) 		0.2441
(81 obs) 		0.7878* 0.3394* 0.2090
O Health & community services 0.8516*
(2,315 obs) 		0.2611*
(1,386 obs) 		0.1585
(231 obs) 		0.8795* 0.3586* 0.2161*
P Cultural & rec. services 0.8509*
(1,708 obs) 		0.2801*
(807 obs) 		-0.0953
(106 obs) 		0.8665* 0.3505* -0.0052
Q Personal & other services 0.8824*
(1,197 obs) 		0.3579*
(676 obs) 		0.2268
(85 obs) 		0.9143* 0.4002* 0.2691

* A star indicates the correlation coefficient is significantly different from zero at the 1% level

Table 7: Correlation Between Measures (levels), All Years Pooled
Pearson Spearman rank
labour prod MFP labour prod MFP
MFP 0.7240*
(1,085,578 obs) 		- 0.6541*
-
profitability -0.0050*
(1,226,574 obs) 		0.0071*
(1,084,338 obs) 		0.1344*
0.1263*

* A star indicates the correlation coefficient is significantly different from zero at the 1% level

Table 8: Correlation Between Measures (annual growth), All Years Pooled

Pearson
Spearman rank
ΔLP ΔMFP Δsales Δemp ΔLP ΔMFP Δsales Δemp
ΔMFP 0.9673*
(643,573 obs) 		- - - 0.9482*
- - -
Δsales 0.5716*
(725,380 obs) 		0.5054*
(643,053 obs) 		- - 0.5419*
0.4790*
- -
Δemploy -0.1572*
(726,123 obs) 		-0.1476*
(643,573 obs) 		0.2621*
(1,320,048 obs) 		- -0.1376*
-0.1356*
0.2655*
-
Δprofitability -0.0004
(725,380 obs) 		-0.0057*
(643,053 obs) 		0.0024
(1,129,717 obs) 		0.0066*
(923,064 obs) 		0.1627*
0.1802*
0.1943*
0.0088*

* A star indicates the correlation coefficient is significantly different from zero at the 1% level

Table 9: Labour Productivity Decile Transitions 2000-2005

Table 9: Labour productivity decile transitions 2000-2005

Table 10: Autocorrelation in Performance Measures (levels and annual growth rates), All Years Pooled

Pearson
Spearman rank
1yr lag 2yr lag 4yr lag 1yr lag 2yr lag 4yr lag
labour prod 0.6305*
(726,123 obs) 		0.5636*
(498,745 obs) 		0.4924*
(193,491 obs) 		0.6829* 0.6188* 0.5474*
MFP 0.7763*
(643,573 obs) 		0.7346*
(442,636 obs) 		0.6992*
(171,836 obs) 		0.8054* 0.7663* 0.7309*
profitability -0.4426*
(1,129,717 obs) 		-0.7267*
(790,117 obs) 		0.0045
(312,338 obs) 		0.6979* 0.6253* 0.5359*
Δlabour prod -0.3484*
(430,272 obs) 		-0.0283*
(246,418 obs) 		0.0040
(62,472 obs) 		-0.2935* -0.0319* 0.0077
ΔMFP -0.3559*
(382,673 obs) 		-0.0270*
(219,577 obs) 		0.0012
(55,714 obs) 		-0.2965* -0.0335* 0.0074
Δsales -0.1569*
(1,268,382 obs) 		-0.0349*
(840,554 obs) 		-0.0053
(229,376 obs) 		-0.0559* -0.0212* 0.0195*
Δemploy -0.0951*
(986,683 obs) 		-0.0553*
(646,152 obs) 		-0.0223*
(173,694 obs) 		-0.0043* -0.0271* -0.0011
Δprofitability -0.9984*
(717,706 obs) 		0.0147*
(435,241 obs) 		-0.0048
(112,913 obs) 		-0.2446* -0.0251* 0.0095*

* A star indicates the correlation coefficient is significantly different from zero at the 1% level

Table 11: Decomposition of Annual Total Employment Growth From Entry & Exit
Year Entering firms Exiting firms Change in incumbents Net change in total employment
2001 74,850 -25,440 -27,170 22,240
2002 72,990 -31,320 -23,450 18,220
2003 78,470 -28,000 -14,410 36,060
2004 76,760 -29,000 -8,320 39,440
2005 74,480 -23,960 -14,000 36,520

*Note: For confidentiality reasons, counts in this table have been randomly-rounded to base 10


Back to Top



Jump to main page content.