Assessing the Macroeconomic Impact of Structural Reforms in Chile
IMF Working Papers, December 14, 2018
Source details
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- Assessing the Macroeconomic Impact of Structural Reforms in Chile
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Bibliographic details
- Authors: Metodij Hadzi-Vaskov
- Published: December 14, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484386934.001
Overview
- The study investigates the likely macroeconomic impact of various structural reforms that align the Chilean regulatory framework with international best practices.
- Analysis components:
- presents a comparison across a large set of structural indicators;
- identifies policy gaps with respect to OECD countries;
- provides quantification of the likely growth and fiscal impact of policy reforms needed to close the gaps.
Key findings
- Chile’s economy is likely to benefit from:
- streamlining business regulation and licensing;
- strengthening innovation and R&D capacity;
- improving labor market flexibility;
- enhancing active labor market policies.
- Under the study’s scenario in which Chile closes structural gaps with OECD’s 25th percentile over five years:
- up to 6 percent higher output level;
- a cumulative net fiscal gain of about ½ percent of GDP.
Quantified scenario and impacts
- Time horizon:
- five years.
- Outcome metrics:
- output level: up to 6 percent higher;
- cumulative net fiscal gain: about ½ percent of GDP.
Policy recommendations (implied by analysis)
- Streamline business regulation and licensing to reduce regulatory barriers to entry and operation.
- Strengthen innovation and R&D capacity to boost productivity and long-term growth.
- Improve labor market flexibility to facilitate adjustment and employment creation.
- Enhance active labor market policies to improve labor reallocation and workforce skills.
Assessing the Macroeconomic Impact of Structural Reforms in Chile — Metodij Hadzi-Vaskov, December 14, 2018.
Content in this bundle
- Assessing the Macroeconomic Impact of Structural Reforms in Chile, WP/18/285, December 2018