An economic study of wool scouring in New Zealand

Abstract

In this thesis we propose to make an economic study of Wool Scouring in New Zealand. Essentially this is an industry survey. We have taken the Wool Scouring Industry as an example of a local primary processing industry and intend to study it using methods of economic investigation. We are particularly interested in using the results to help forecast future development of the industry. This thesis is an attempt to carry out a full scale economic investigation of one primary processing export industry. It is a study which we hope will be a forerunner of many more similar studies carried out on the other industries of this type. It will provide valuable indications as to the future of this particular industry and of its contribution to the industrial and economic development of the country. There are two main avenues of investigation essential to a study such as this. Firstly there is a production study of the industry itself and secondly there is a marketing study of the distribution of the processed product. The production study aims at estimating the marginal costs of expansion of the industry, and involves the calculation of the real marginal productivities of the resources employed. The marketing study aims at estimating the elasticity of demand for the processed product and involves an assessment, from past trends, of the influence of the main factors effecting sales. Projection of demand entails the forecasting of future changes in these factors and the estimation of their net effect on the level of total demand.