Chilean Growth through East Asian Eyes

Chile could well have space to increase its growth potential by 2 percentage points of Gross Domestic Product (GDP) per year. To do this, it would need to pay more attention to new sources of growth in natural resources, manufacturing, and services. In an increasingly globalized world, first-mover advantages have become more numerous and larger. Chile risks losing out, as a few recent high-profile cases suggest. Chile's total factor productivity growth can be raised by driving within-firm technological change closer to the global best-practice frontier more rapidly, especially in manufacturing. This would encourage the diversification of exports and boost Chile's supply response to global demand changes. Chile confronts obstacles in its processes of innovation, human capital accumulation, and investment. To overcome them, deep institutional changes are needed to develop a national innovation system, stronger and more equitable educational achievement, more flexible labor markets, and focused public investments that crowd in private business. Such an inclusive growth strategy is likely to yield better social outcomes than a strategy that attempts to confront social inequities head-on through more equitable access to public services without paying adequate attention to the demand for labor and generation of income. Chile could also try a new policy towards innovation, but it would need to be bolder in terms of the institutional design to maximize the chances of success.

Bibliographic Details

Main Authors:	Kharas, Homi, Leipziger, Danny, Maloney, William, Thillainathan, R., Hesse, Heiko
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2008
Subjects:	ACTION PLAN, ACTION PLANS, AGGREGATE LEVEL, ANNUAL GROWTH, AVERAGE GROWTH, AVERAGE PRODUCTIVITY, AVERAGE PRODUCTIVITY LEVELS, BARGAINING, BENCHMARKING, BENCHMARKS, BEST PRACTICE, BEST PRACTICES, BEST-PRACTICE, BROADBAND, BUDGET ALLOCATIONS, BUSINESS CLIMATE, BUSINESS CYCLE, BUSINESS CYCLES, BUSINESS INDICATORS, BUSINESS LEADERS, BUSINESS OPPORTUNITIES, BUSINESS PLAN, BUSINESS SECTOR, BUSINESSES, CAPITAL ACCUMULATION, CAPITAL EXPENDITURE, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INVESTMENT, CAPITAL MARKETS, CENTRAL BANK, COLLECTIVE BARGAINING, COMMODITY, COMPARATOR COUNTRIES, COMPETITIVENESS, COMPUTER TRAINING, COUNTRY CASE, COUNTRY REGRESSIONS, COUNTRY RISK, COUNTRY SPECIFIC, DEREGULATION, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT AGENCY, DEVELOPMENT GOALS, DEVELOPMENT INDICATORS, DEVELOPMENT OF KNOWLEDGE, DEVELOPMENT POLICY, DEVELOPMENT PRACTITIONERS, DEVELOPMENT STRATEGY, DIGITAL DIVIDE, DISPLACEMENT, DIVERSIFICATION, DRIVERS, E-MAIL, EBUSINESS, ECONOMETRIC MODELING, ECONOMIC BENEFITS, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC POLICY, ECONOMICS, EMPIRICAL WORK, EMPLOYMENT, EXPECTED VALUE, EXPORT DIVERSIFICATION, EXPORT GROWTH, EXPORTS, EXTERNALITIES, EXTERNALITY, FACTOR ACCUMULATION, FEMALE EMPLOYMENT, FEMALE LABOR, FEMALE LABOR FORCE, FINANCIAL CRISIS, FINANCIAL MARKETS, FINANCIAL SERVICES, FISCAL POLICIES, FISCAL POLICY, FLEXIBLE LABOR MARKETS, FOREIGN EXCHANGE, FREE TRADE, GDP, GDP PER CAPITA, GLOBAL COMPETITIVENESS, GLOBAL CONDITIONS, GLOBAL ECONOMY, GLOBALIZATION, GOVERNMENT POLICIES, GOVERNMENT SUBSIDY, GROSS OUTPUT, GROWTH PATH, GROWTH PERFORMANCE, GROWTH POLICIES, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, GROWTH REGRESSION, GROWTH STRATEGIES, GROWTH STRATEGY, GROWTH SUCCESSES, HIGH GROWTH, HUMAN CAPITAL, HUMAN RESOURCE, HUMAN RESOURCE DEVELOPMENT, ICT, IMPROVING PRODUCTIVITY, INCOME, INCOME LEVELS, INDUSTRIALIZED COUNTRIES, INFORMATION INFRASTRUCTURE, INNOVATION, INNOVATION POLICIES, INNOVATIONS, INSTITUTION, INTANGIBLE ASSETS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTMENT CLIMATE, JOB CREATION, KNOWLEDGE ECONOMY, KNOWLEDGE WORKERS, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR PRODUCTIVITY, LEGAL FRAMEWORK, LEVELS OF OUTPUT, LICENSES, LIVING STANDARDS, LOTTERY, MACRO STABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILIZATION, MANPOWER, MANPOWER PLANNING, MANUFACTURING, MARGINAL PRODUCTS, MARKET ECONOMY, MARKET FAILURES, MARKET SHARE, MATHEMATICS, MEDIUM ENTERPRISES, NATURAL RESOURCES, NETWORKS, NEW TECHNOLOGIES, NEXT GENERATION, ORGANIZED LABOR, OUTSOURCING, PACE OF INNOVATION, PCS, PER CAPITA GROWTH, PER CAPITA INCOME, PHYSICAL DISTANCE, POLICY CHANGE, POLICY CHANGES, POLICY INTERVENTIONS, POLICY MAKERS, POLITICAL ECONOMY, POLITICAL PROCESS, POVERTY REDUCTION, PRIVATE INVESTMENT, PRIVATE PARTNERSHIPS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTORS, PROCUREMENT, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC PROGRAMS, PUBLIC SECTOR, QUERIES, R&D, RAPID GROWTH, RATE OF RETURN, RAW DATA, REAL INTEREST RATES, REFORM PROGRAM, RELATIVE CONTRIBUTION, RELIABILITY, RENTS, RESEARCH WORKERS, RESOURCE ALLOCATION, RESULT, RESULTS, RETAIL TRADE, RISK PREMIUM, SECURE PROPERTY RIGHTS, SIGNIFICANT IMPACT, SKILLED LABOR, SKILLED WORKERS, SOCIAL ISSUES, SOCIAL SERVICES, STATE OF KNOWLEDGE, TARGETS, TECHNICAL EFFICIENCY, TECHNICAL PROGRESS, TECHNOLOGICAL CHANGE, TECHNOLOGICAL PROGRESS, TELEPHONE, TFP, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE UNIONS, TRAINING REQUIREMENTS, TRANSACTION, TRANSACTION COSTS, USES, VALUATION, VALUE CHAIN, WAGES, WORK FORCE, WORKER PRODUCTIVITY,
Online Access:	http://documents.worldbank.org/curated/en/754381468326995501/Chilean-growth-through-East-Asian-eyes https://hdl.handle.net/10986/28028
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