{
  "title": "Growth and Production Network in Chile: Chile",
  "publication": "Selected Issues Papers, February 25, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/02/25/growth-and-production-network-in-chile-chile-562667",
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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.",
  "sections": [
    {
      "heading": "Overview and key thesis",
      "content": "- Productivity growth depends not only on technological innovation but also on production networks that amplify its impact.\n- Theory and cross-country evidence indicate a positive relationship between productivity growth and the use of intermediate inputs, a measure of network connectedness."
    },
    {
      "heading": "Main findings",
      "content": "- Chile’s intermediate input utilization is significantly lower than that of OECD peers, such as Korea and the Czech Republic.\n- Intermediate input utilization in Chile declined during 2008-21.\n- The lower utilization is primarily due to:\n  - weak domestic producer connections, and\n  - the smaller presence of the manufacturing sector."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Diversify exports away from mining to strengthen network linkages.\n- Reduce trade costs to facilitate greater intermediate input usage and connectivity.\n- Improve contract enforcement to bolster domestic producer connections and production networks."
    },
    {
      "heading": "Subject and keywords",
      "content": "- Subject: Economic sectors, Exports, International trade, Manufacturing, Production, Productivity, Total factor productivity\n- 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\n\n---\n\n Content in this bundle\n\n- Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025\n  - Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/02/25/growth-and-production-network-in-chile-chile-562667"
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    "Authors: Si Guo",
    "Published: February 25, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229002134.018",
    "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.",
    "Chile’s intermediate input utilization is significantly lower than that of OECD peers, such as Korea and the Czech Republic.",
    "Intermediate input utilization in Chile declined during 2008-21.",
    "The lower utilization is primarily due to:",
    "Diversify exports away from mining to strengthen network linkages.",
    "Reduce trade costs to facilitate greater intermediate input usage and connectivity.",
    "Improve contract enforcement to bolster domestic producer connections and production networks.",
    "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",
    "**Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025**"
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