Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205485 
Authors: 
Year of Publication: 
2002
Series/Report no.: 
New Zealand Treasury Working Paper No. 02/10
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
This paper surveys qualitative evidence with the aim of identifying consistent issues surrounding the growth of New Zealand firms. The available literature is focussed on exporters and raises the possibility of two "hurdles" to growth for New Zealand firms. The first is the fixed-cost hurdle to entering exporting. The second is the hurdle of establishing the offshore distribution channels required for continued growth. While the evidence for these hurdles is far from conclusive, their existence is consistent with many of the available case studies. The hurdle to ongoing growth may explain why so many promising New Zealand companies are sold to foreign firms in the same industry. Overseas ownership by a firm in the same industry often solves the distribution problems of many small New Zealand firms and allows growth to continue. The outcome of overseas ownership is therefore not necessarily bad for New Zealand. The case study evidence suggests many plausible causes of these hurdles. These include New Zealand's small market size and distant location and the fluctuating exchange rate. While the evidence on capital markets is mixed, case studies suggest a possible lack of specialised expertise on the part of New Zealand's small venture capital industry may also be a hurdle to growth.
Subjects: 
Patterns of Firm Growth
Exporting
JEL: 
D21
F14
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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