Income and productivity in New Zealand farming: 1921-1956

Abstract

The purpose of this bulletin is to set out mainly in graphical form, entirely new estimates of inputs, output and money income in New Zealand agriculture. These have been calculated for the period 1921 to 1956 using in most instances previously unexplored data. The source of the data and the methods of calculation are detailed wherever appropriate so that others who plan further work in this important field may more readily do so. The script is confined to a generalised commentary on the nature of the relationships exhibited by the data and statistical analysis is restricted to simple regression. It is hoped that this will encourage reading of the bulletin by persons not familiar with economic theory but interested in the broad and important issues surrounding the efficient use of our resources of land, labour and capital. For this reason it has been thought desirable to begin the bulletin with a brief discussion on the aims of productivity analysis. What are the criteria of efficient resource use, and what are the economic rules governing the allocation of resources throughout the economy? Part I attempts to answer the questions without recourse to too much current economic terminology. It may be presumptuous to attempt this in such a brief and superficial way for whole books have been published with a similar objective. Certainly it is not possible in these notes to familiarise the reader with the host of economic and noneconomic factors involved. But it may be possible to give an outline of the relevant ideas and theories which economists hold, without reducing the whole body of knowledge so much that it is unrecognisable.