Differences in productivity explain much of the growing income gap between Australia and New Zealand. Good policy …

New Zealand’s average income, defined as GDP per capita, is now three quarters that of Australia and even lower than in … Australia’s poorest state, Tasmania. Over the last seven years, New Zealand has grown slightly faster than Australia,but at … these rates, it would still take 140 years to close the trans-Tasman incomegap. To catch up with Australia in five to 10 …