Micro Efficiency and Aggregate Growth in Chile

Raphael Bergoeing () and Andrea Repetto

Cuadernos de Economía (Latin American Journal of Economics), 2006, vol. 43, issue 127, pages 169-192

Abstract: Using plant-level data on Chilean manufacturing firms for the 1980-2001 period, we estimate and characterize disaggregate total factor productivity. We use these estimates to study the microeconomic sources of aggregate efficiency, a fundamental part of aggregate growth. By decomposing productivity dynamics into production reallocation and within plant efficiency changes, we find that reallocation accounted for almost all of total efficiency gains in Chile during the past few decades. The entry of new, more productive units explains most of these reallocation gains. Within-plant productivity growth contributes positively only during the 1990s, due perhaps to a lag between the implementation of major market oriented structural reforms –mostly undertaken during the late 1970s and early 1980s– and their complete effect on the economy. Our findings suggest that once reforms were consolidated, unbounded within-plant efficiency gains driven by technology adoption and innovation occurred.

Keywords: Plant Dynamics; Total Factor Productivity; Growth; Chilean Manufacturing. (search for similar items in EconPapers)
JEL-codes: L16 L60 O30 O47 (search for similar items in EconPapers)
Date: 2006
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Persistent link: http://EconPapers.repec.org/RePEc:ioe:cuadec:v:43:y:2006:i:127:p:169-192

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