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Investment-Specific Productivity Growth - Chile in a Global Perspective

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  • Gabriel Di Bella
  • Mr. Martin D. Cerisola

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.

Suggested Citation

  • Gabriel Di Bella & Mr. Martin D. Cerisola, 2009. "Investment-Specific Productivity Growth - Chile in a Global Perspective," IMF Working Papers 2009/264, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/264
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    References listed on IDEAS

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    5. Mr. Martin D. Cerisola & Mr. Jorge A Chan-Lau, 2000. "Tales From Two Neighbors: Productivity Growth in Canada and the United States," IMF Working Papers 2000/169, International Monetary Fund.
    6. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-362, June.
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    Cited by:

    1. Andrea Linarello, 2014. "Trade liberalization and domestic suppliers: evidence from Chile," Temi di discussione (Economic working papers) 994, Bank of Italy, Economic Research and International Relations Area.
    2. Ms. Yan M Sun, 2010. "Potential Growth of Australia and New Zealand in the Aftermath of the Global Crisis," IMF Working Papers 2010/127, International Monetary Fund.
    3. Linarello, Andrea, 2018. "Direct and indirect effects of trade liberalization: Evidence from Chile," Journal of Development Economics, Elsevier, vol. 134(C), pages 160-175.

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    Keywords

    WP; market concentration;

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