Productivity and Economic Growth: the Case of Chile
AbstractAfter a decade and a half of economic growth above 7% per year, the Chilean economy has been growing at rates below 3% during the last five years. In this article we suggest that in order to produce a new surge in economic growth, Chile needs a productivity shock arising from economic policy initiatives aimed at improving economic efficiency and institutions. Although Chile has a good record in both, it is still possible to have an upgrade. We run a cross section regression in which the dependent variable is total factor productivity. We conclude that modest changes in the country’s policies and institutions may increase Chile’s rate of growth in 1.5 percent points.
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Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 174.
Date of creation: Aug 2002
Date of revision:
Other versions of this item:
- Harald Beyer & Rodrigo Vergara, 2002. "Productivity and Economic Growth: The Case of Chile," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.), Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 10, pages 309-342 Central Bank of Chile.
- NEP-ALL-2002-08-16 (All new papers)
- NEP-DEV-2002-08-16 (Development)
- NEP-LAM-2002-07-31 (Central & South America)
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