Case Studies By Service Area
Financial and Economic Services
Improving New Zealand's Investment Environment
The scope
MartinJenkins Director, Nick Davis, undertook work for both the Treasury and the Ministry of Economic Development (MED) in 2007 on New Zealand’s Investment Environment. Economic performance is influenced by a wide range of factors including the level of development of the financial system. This work sought to explore the proposition that, among other factors, a lack of saving and financial development may be constraining the growth and productivity performance of New Zealand firms.
Our Involvement
MartinJenkins Director, Nick Davis, led research and policy analysis of the links between savings, financial market development and investment, producing a series of internal papers to help advance his clients’ understanding of these issues. He also oversaw work by MED analysts as part of their project on improving New Zealand’s investment environment.
The Outcome
On 31 October 2007, the Treasury released a Policy Perspectives Paper co-authored by Nick Davis on New Zealand Financial Markets, Saving and Investment. The paper reached the preliminary conclusion that a lack of development in certain parts of New Zealand’s financial system could be a moderate constraint on the growth and performance of New Zealand firms. The paper acknowledges the progress that has been made through KiwiSaver and reduced tax on savings funds, but suggests there may be a role for Government in further development of the financial system. Nick subsequently contributed to the development of a report prepared to stimulate discussion at MED’s Investment Forum, held on 27 November 2007.
The MartinJenkins Difference
This project required a unique blend of strategic policy thinking, policy-oriented research skills, in-depth knowledge of economics and finance, and a sound understanding of the New Zealand financial system. Nick’s familiarity with these issues, and his ability to identify and make-sense of connections across a broad-range of research and evidence, was critical to the success of this project. Nick adopts an inclusive approach to his work and enjoys facilitating debate and dialogue about important policy issues affecting New Zealand’s economic development.
