Investment-Specific Productivity Growth - Chile in a Global Perspective
- ISBN-10
- 145187409X
- ISBN-13
- 9781451874099
- Category
- Business & Economics
- Pages
- 18
- Language
- English
- Published
- 2009-12-01
- Publisher
- International Monetary Fund
- Authors
- Mr.Gabriel Di Bella, Mr.Martin Cerisola
Description
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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