Assessing the Macroeconomic Impact of Structural Reforms in Chile
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
This study investigates the likely macroeconomic impact of various structural reforms that align the Chilean regulatory framework with international best practices. In this context, the analysis: i) presents a comparison across a large set of structural indicators; ii) identifies policy gaps with respect to OECD countries; and iii) provides quantification of the likely growth and fiscal impact of policy reforms needed to close the gaps. Chile’s economy is likely to benefit from streamlining business regulation and licensing, strengthening innovation and R&D capacity, improving labor market flexibility, and enhancing active labor market policies. Overall, the study presents a scenario in which Chile closes structural gaps with OECD’s 25th percentile over five years, with up to 6 percent higher output level and a cumulative net fiscal gain of about ½ percent of GDP.
Series:
Working Paper No. 2018/285
Subject:
Active labor market policies Employment protection Labor Macrostructural analysis Production Revenue performance assessment Structural reforms Tax gap Total factor productivity
English
Publication Date:
December 14, 2018
ISBN/ISSN:
9781484386934/1018-5941
Stock No:
WPIEA2018285
Pages:
25
Please address any questions about this title to publications@imf.org