Selected Issues Papers

Growth and Production Network in Chile: Chile

By Si Guo

February 25, 2025

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Format: Chicago

Si Guo. "Growth and Production Network in Chile: Chile", Selected Issues Papers 2025, 010 (2025), accessed March 28, 2025, https://doi.org/10.5089/9798229002134.018

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Summary

Productivity growth depends not only on technological innovation but also on production networks that amplify its impact. Theory and cross-country evidence indicate a positive relationship between productivity growth and the use of intermediate inputs, a measure of network connectedness. We find that Chile’s intermediate input utilization is significantly lower than that of OECD peers, such as Korea and the Czech Republic, and declined during 2008-21. This is primarily due to weak domestic producer connections and the smaller presence of the manufacturing sector. We argue that diversifying exports from mining, reducing trade costs, and improving contract enforcement could strengthen network linkages and boost growth.

Subject: Economic sectors, Exports, International trade, Manufacturing, Production, Productivity, Total factor productivity

Keywords: A. growth slowdown, Aggregate productivity growth, Chile, D. input-output linkage, Eastern Europe, Exports, Global, Input-output, Manufacturing, Network linkage, Production network, Productivity, Total factor productivity

Publication Details

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