## Growth and Production Network in Chile: Chile

_Selected Issues Papers, February 25, 2025_

## Source details

**Canonical URL:** [Growth and Production Network in Chile: Chile](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/02/25/growth-and-production-network-in-chile-chile-562667)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2025/02/25/growth-and-production-network-in-chile-chile-562667/index.md)
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## Bibliographic details
- Authors: Si Guo
- Published: February 25, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229002134.018

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### Overview and key thesis
- 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.

### Main findings
- 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:
  - weak domestic producer connections, and
  - the smaller presence of the manufacturing sector.

### Policy implications and recommendations
- 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 and keywords
- 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

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## Content in this bundle

- **Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025**
  - [Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025 (Markdown version)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025010.pdf.md){rel="alternate" type="text/markdown"}
  - [Growth and Production Network in Chile; IMF Selected Issues Paper No. 2025/010; January 16, 2025 (PDF)](/-/media/files/publications/selected-issues-papers/2025/english/sipea2025010.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/02/25/growth-and-production-network-in-chile-chile-562667_