Productivity growth is associated with entry of and growth of high-performing fi rms, and the shrinking and exit of low-performing ones. New Zealand has high rates of fi rm entry and exit, but a low and declining share of high-growth businesses. Investment, Saving, and Financial Market Development New Zealand’s gross fi xed capital formation as a percentage of GDP is around the OECD mean. Plant and machinery investment has been slightly above the OECD mean in most years since 1970. This is important to New Zealand’s growth prospects, since private sector investment in capital equipment is associated with.
