IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Macro Dimensions of Chile's Export Dilemma

Listed author(s):
  • Arroyo Francisco


    (University of Chile)

  • Edmunds John C.


    (Babson College)

Registered author(s):

    The success of Chile's economy in the past decades is relevant to the efforts of other emerging countries to achieve rapid economic growth. One of Chile's main accomplishments has been a steady increase in exports. The increase was in physical volume of exports, not in unit value. This increase was the result of a correct strategy of opening the economy, which permitted the more competitive Chilean businesses to access external markets. This strategy may be reaching a point of diminishing returns, so the dilemma that Chile now faces is relevant to other emerging countries as they try to grow their economies rapidly. To achieve significant further growth in the long run, Chile needs to move into new kinds of business opportunities, in categories and areas where it has not established a foothold. To break into these new areas, Chile has to develop new capabilities and new strategies. The old way of growing the economy is running into constraints.The data is about Chile's wood products export industry, which is the country's most successful in terms of adding value as measured by macro metrics. That export industry is not as well known as Chile's wine and fresh fruit export industries but has a more impressive record. The firms in Chile's wood export industry, despite being successful in increasing the dollar value of products exported, have not been able to make themselves competitive in stages of wood production beyond basic and repetitive processes. Other emerging countries are facing the same challenge.Chilean wood products exporting firms in Chile have been slow to respond to signals from the market. They have not been able to achieve high standards of quality or precision, and they have worked only with local raw materials. These firms have attempted to export manufactured products, but these attempts have failed. For those reasons many observers argue that the advantage in the market that these firms enjoy is due to superior endowments of natural resources rather than to corporate strategies.High raw material prices have not triggered a new chapter in this history. On the contrary, this comfortable situation has lulled the country into complacency. Other countries were in the same comfortable situation and now the financial crisis has intervened. Chile's present slow growth is discouraging but might prod the country to achieve greater sophistication in exporting goods and services.

    If 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.

    File URL:
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by De Gruyter in its journal Global Economy Journal.

    Volume (Year): 9 (2010)
    Issue (Month): 4 (January)
    Pages: 1-19

    in new window

    Handle: RePEc:bpj:glecon:v:9:y:2010:i:4:n:8
    Contact details of provider: Web page:

    Order Information: Web:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. MD. Ramirez, 2000. "Public capital formation and labor productivity growth in Chile," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 159-169, April.
    2. Boriss Siliverstovs & Dierk Herzer, 2007. "Manufacturing exports, mining exports and growth: cointegration and causality analysis for Chile (1960-2001)," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 153-167.
    3. Zahler, Roberto, 1995. "Chile: growth with stability," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34027, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Hojman, David E, 2002. "The Political Economy of Chile's Fast Economic Growth: An Olsonian Interpretation," Public Choice, Springer, vol. 111(1-2), pages 155-178, March.
    5. Amin Gutierrez de Pineres, Sheila & Ferrantino, Michael, 1997. "Export diversification and structural dynamics in the growth process: The case of Chile," Journal of Development Economics, Elsevier, vol. 52(2), pages 375-391, April.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bpj:glecon:v:9:y:2010:i:4:n:8. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.