Potential Output Growth in Emerging Market Countries : The Case of Chile

Author/Editor:

Jorge Roldos

Publication Date:

September 1, 1997

Electronic Access:

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Summary:

This paper estimates potential output and the sources of growth in Chile during 1970-96. Actual output is cointegrated with the quality-adjusted measures of capital and labor, and constant returns to scale cannot be rejected. The estimates of potential output show a positive output gap in the years when the Chilean economy was deemed to be overheated. In 1986-90, the quality-adjusted labor variable explains close to 60 percent of the growth rate of GDP, while during 1991-95 capital formation plays a dominant role. The contribution of TFP growth in Chile is relatively small, but, based on a comparison with European and East Asian experiences, it is expected to increase in the medium term.

Series:

Working Paper No. 97/104

Subject:

English

Publication Date:

September 1, 1997

ISBN/ISSN:

9781451947977/1018-5941

Stock No:

WPIEA1041997

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

26

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