This paper examines New Zealand's poor productivity performance from the reform period onwards, from the perspective of economic geography. Rather than employing institutional or free-market versus interventionist arguments to explain New Zealand's low productivity, as is usually the case, the argument developed here is that the debate should be considered from a very different viewpoint. If we adopt an economic geography perspective, there is nothing really paradoxical about New Zealand's productivity performance. As such, New Zealand's productivity performance is rather more of a conundrum, a riddle, with a fairly straightforward solution.
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