Chile: A Role Model of Export Diversification Policies?

IMF Working Papers, May 27, 2021

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Largely because of its vast copper reserves, Chile’s exports are highly concentrated on this low complexity product and this is often cited as a major drawback of its economic policy framework.
However, its exogenous copper abundance conceals the country’s success in developing non-mineral and complex exports.
This achievement is remarkable considering its remoteness from the large international economic centers, which limits its integration to global value chains.
As suggested in this paper, this accomplishment reflects Chile’s strength in policy areas that foster non-mineral exports (including complex exports), making the country a role model in export diversification and complexity policies among emerging market countries.

Exports are highly concentrated on copper, a low complexity product.
Despite copper abundance, Chile has successfully developed non-mineral and complex exports.
Geographic remoteness from large international economic centers constrains integration into global value chains, yet diversification and complexity advances were achieved nonetheless.
The country’s export performance reflects strengths in policy areas that promote non-mineral and complex export development.

Chile’s experience serves as a role model in export diversification and complexity policies among emerging market countries.
The paper attributes Chile’s non-mineral export success to effective policy frameworks that foster diversification and complexity.

IMF Working Paper No. 2021/148 (Gonzalo Salinas, May 27, 2021). DOI: https://doi.org/10.5089/9781513573373.001