Openness and economic efficiency: evidence from the Chilean manufacturing industry
AbstractThis paper highlights a long-standing debate on whether openness does help economic efficiency in the light of the data for Chilean manufacturing industry. To do so, we analyse the TFP growth during the period of the abrupt trade reform in the seventies. This data base provides evidence favoring the hypothesis that a shift towards a condition of laissez faire substantially improves productivity in the economy. In actual fact, during the period 1975 – 1979, the annual rate of TFP growth in the manufacturing industry was 4.35 percent yearly on average. However, for the period 1980 – 1982 this growth was -0.67. The sectors whose productivity increased at a greater speed, in the first years of the reform, were those associated with natural competitive advantages. Subsequently an increase in those industries which are more capital intensive was recorded. This contrasts with some results which were obtained earlier and confirms others which are addressed in the paper.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 22 (1995)
Issue (Month): 2 Year 1995 (December)
Openness; economic efficiency; manufacturing industry.;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rodrigo Vergara & Rosario Rivero, 2006.
"Productividad Sectorial en Chile: 1986-2001,"
Latin American Journal of Economics-formerly Cuadernos de Economía,
Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(127), pages 143-168.
- Rómulo Chumacero & Rodrigo Fuentes, 2005.
"On the Determinants of Chilean Economic Growth,"
Central Banking, Analysis, and Economic Policies Book Series,
in: Rómulo A. Chumacero & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel ( (ed.), General Equilibrium Models for the Chilean Economy, edition 1, volume 9, chapter 5, pages 163-188
Central Bank of Chile.
- Roberto Alvarez & Rodrigo Fuentes, 2003. "Trade Reforms and Manufacturing Industry in Chile," Working Papers Central Bank of Chile 210, Central Bank of Chile.
- Jayanthakumaran, Kankesu, 2002. "The Impact of Trade Liberalisation on Manufacturing Sector Performance in Developing Countries: A Survey of the Literature," Economics Working Papers wp02-07, School of Economics, University of Wollongong, NSW, Australia.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Verónica Kunze).
If references are entirely missing, you can add them using this form.