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Investment-Specific Productivity Growth: Chile from a Global Perspective

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  • Gabriel Di Bella
  • Martín Cerisola
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    Abstract

    By the end of 2007, Chile’s total factor productivity was lower than ten years earlier, a performance that contrasted sharply with the previous decade, when productivity grew by a cumulative 30 percent. This paper assesses productivity trends in Chile, by decomposing productivity into investment-specific technological change (associated with improvements in the quality of capital) and neutral technological change (related to the organization of productive activities). It concludes that investment-specific technological improvements have contributed significantly to long-term growth in Chile, in line with trends observed in other net commodity exporters, while neutral technological change has been slow.

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    File URL: http://www.bcentral.cl/eng/studies/economia-chilena/2011/recv14n1abr2011pp5-24.pdf
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    Bibliographic Info

    Article provided by Central Bank of Chile in its journal Economía Chilena.

    Volume (Year): 14 (2011)
    Issue (Month): 1 (April)
    Pages: 05-24

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    Handle: RePEc:chb:bcchec:v:14:y:2011:i:1:p:05-24

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