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There have been numerous concerns about the lack of productivity improvement in the New Zealand construction industry. The aim of this paper, therefore, is to determine the main drivers of productivity in the industry. The research used is a two-staged data envelopment analysis approach to achieve the aim. In terms of improvements to the productivity of construction in New Zealand, the study found that although there is a potential for gains through the greater use of research and development, apprentice training and degree education, as well as the consolidation of some building companies, there will be some limits to the gains that might be made. One main implication of the findings of the study, therefore, is that a renewed focus on education and skills training should be a priority of companies and policy makers in New Zealand.
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