Standards can raise GDP by up to 1% – new NZ study

14 September 2011

A new Business and Economic Research Limited (BERL) study, The Economic Benefits of Standards to New Zealand, provides compelling evidence of how sustained investment in developing and maintaining Standards could lift New Zealand's gross domestic product by up to 1%. The Economic Benefits of Standards to New Zealand found that Standards are powerful economic levers; encourage innovation; improve market efficiency and prevent market failures; improve information to purchasers; and reduce transaction costs.

Standards New Zealand and BRANZ commissioned the research with support from the Institution of Professional Engineers in New Zealand and the New Zealand Institute of Architects.

BERL focused its research on a group of Standards within the building and construction sector. Interviews were held with key stakeholders and industry representatives to explore what the economic benefits (and costs) of Standards are from the point of view of this sector. One of the case study Standards was NZS 3910:2003 Conditions of contract for building and civil engineering construction. This Standard encourages people to use the same methods, processes, and forms. The findings showed that the Standard created a level playing field and transparency in the industry, minimised unnecessary duplication, confusion, and inconsistencies, and decreased transaction costs.

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Standards can raise GDP by up to 1% – new NZ study

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