## Assessing the Macroeconomic Impact of Structural Reforms in Chile

_IMF Working Papers, December 14, 2018_

## Source details

**Canonical URL:** [Assessing the Macroeconomic Impact of Structural Reforms in Chile](https://www.imf.org/en/publications/wp/issues/2018/12/14/assessing-the-macroeconomic-impact-of-structural-reforms-in-chile-46405)

## Other formats

- [Markdown version](/en/publications/wp/issues/2018/12/14/assessing-the-macroeconomic-impact-of-structural-reforms-in-chile-46405/index.md)
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## Bibliographic details
- Authors: Metodij Hadzi-Vaskov
- Published: December 14, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484386934.001

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### Overview
- The study investigates the likely macroeconomic impact of various structural reforms that align the Chilean regulatory framework with international best practices.
- Analysis components:
  - presents a comparison across a large set of structural indicators;
  - identifies policy gaps with respect to OECD countries;
  - provides quantification of the likely growth and fiscal impact of policy reforms needed to close the gaps.

### Key findings
- Chile’s economy is likely to benefit from:
  - streamlining business regulation and licensing;
  - strengthening innovation and R&D capacity;
  - improving labor market flexibility;
  - enhancing active labor market policies.
- Under the study’s scenario in which Chile closes structural gaps with OECD’s 25th percentile over five years:
  - up to 6 percent higher output level;
  - a cumulative net fiscal gain of about ½ percent of GDP.

### Quantified scenario and impacts
- Time horizon:
  - five years.
- Outcome metrics:
  - output level: up to 6 percent higher;
  - cumulative net fiscal gain: about ½ percent of GDP.

### Policy recommendations (implied by analysis)
- Streamline business regulation and licensing to reduce regulatory barriers to entry and operation.
- Strengthen innovation and R&D capacity to boost productivity and long-term growth.
- Improve labor market flexibility to facilitate adjustment and employment creation.
- Enhance active labor market policies to improve labor reallocation and workforce skills.

*Assessing the Macroeconomic Impact of Structural Reforms in Chile — Metodij Hadzi-Vaskov, December 14, 2018.*

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## Content in this bundle

- **Assessing the Macroeconomic Impact of Structural Reforms in Chile, WP/18/285, December 2018**
  - [Assessing the Macroeconomic Impact of Structural Reforms in Chile, WP/18/285, December 2018 (Markdown version)](/-/media/files/publications/wp/2018/wp18285.pdf.md){rel="alternate" type="text/markdown"}
  - [Assessing the Macroeconomic Impact of Structural Reforms in Chile, WP/18/285, December 2018 (PDF)](/-/media/files/publications/wp/2018/wp18285.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2018/12/14/assessing-the-macroeconomic-impact-of-structural-reforms-in-chile-46405_