This paper presents an explanation of how the dynamic but uncertain process of economic development and growth occurs. It shows that economic development leads to structural change, an enhancement of capabilities and path dependence in the economy. It examines three different approaches to...

New Zealand, beginning in 1984, implemented a virtual economic revolution that involved trade liberalization, privatization of state assets and crown corporations, deregulation of labour markets, the establishment of an independent central bank, a major reform of public finances and taxes, and a...

The relative performance of the Australian and New Zealand economies has been the subject of many questions. Why, if New Zealand reformed so much, has the Australian economy performed so much better? Why are average incomes in Australia so much higher than in New Zealand? This paper explores...