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The Political Economy of Productivity. The Case of Chile

Author

Listed:
  • Cristobal Aninat
  • Jose Miguel Benavente
  • Ignacio Briones
  • Nicolas Eyzaguirre
  • Patricio Navia
  • Jocelyn Olivari

Abstract

This paper analyzes the political economy of productivity-related policymaking in Chile following a political transaction cost model (Spiller and Tommasi, 2003; Murillo et al., 2008). The main findings indicate that i) the Chilean policymaking process (PMP) was successful in the 1990s in implementing productivityenhancing policies, but as the country moved to a higher stage of development, the PMP grew less adept at generating the more complex set of policies needed to increase productivity at this stage; and ii) the Chilean PMP is less transparent than previously thought (Aninat et al., 2008), thus allowing political actors to favor private interests without being punished by the electorate. This has become apparent as the more sophisticated reforms needed at this stage of development require a deeper and more consolidated democracy.

Suggested Citation

  • Cristobal Aninat & Jose Miguel Benavente & Ignacio Briones & Nicolas Eyzaguirre & Patricio Navia & Jocelyn Olivari, 2010. "The Political Economy of Productivity. The Case of Chile," Research Department Publications 4662, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4662
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    Cited by:

    1. Cornick, Jorge, 2013. "The Organization of Public-Private Cooperation for Productive Development Policies," IDB Publications (Working Papers) 4590, Inter-American Development Bank.
    2. Vicente Germán-Soto & Cesáreo Gámez Garza, 2017. "El ciclo económico de la productividad y su relación con el ciclo político en México, 1993.1 - 2014.4," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 65-94.
    3. Iizuka, Michiko & Vargas, Fernando & Baumann, Jakob, 2017. "Financial mechanism to invest in knowledge from natural resource revenues: Experiences from Bolivia, Chile, Colombia and Peru," MERIT Working Papers 2017-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    Keywords

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    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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