Investment-Specific Productivity Growth - Chile in a Global Perspective

Information about Western Hemisphere Hemisferio Occidental

Journal Issue

Volume/Issue:: 2009/264
Series:: IMF Working Papers
Author(s):: Gabriel Di Bella, and Martin Cerisola
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: December 2009
DOI:: http://dx.doi.org/10.5089/9781451874099.001
ISBN:: 9781451874099
ISSN:: 1018-5941
Page:: 16

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.

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Investment-Specific Productivity Growth - Chile in a Global Perspective