Chile's Rapid Growth in the 1990's-Good Policies, Good Luck, or Political Change?
August 1, 2000
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Summary
Chile’s average economic growth between 1990 and 1998 was above 7 percent per year, more than double than in previous decades, and higher than in any other Latin American country in the same period. This paper assesses empirically the main hypotheses suggested in the literature about the factors underlying this rapid growth: good economic policies, good luck in the external sector, and the country’s return to a democratic system of government. The statistical and quantitative results indicate that Chile’s rapid growth during the 1990s was due to good policies and the improved political situation.
Subject: Inflation, International trade, Macrostructural analysis, Prices, Production, Production growth, Productivity, Structural reforms, Terms of trade
Keywords: average deviation, Chile, democracy, equation, growth, inflation, inflation variable, integrating equation, low-inflation environment, price level, Production growth, Productivity, productivity growth, structural reforms, Terms of trade, unemployment rate, way inflation, WP
Pages:
36
Volume:
2000
DOI:
Issue:
153
Series:
Working Paper No. 2000/153
Stock No:
WPIEA1532000
ISBN:
9781451857146
ISSN:
1018-5941
