 Por la Razón o La Fuerza: What Caused Chile’s Economic Miracle?Enrique Escalante ()
Chapter Chapter 12 in The Pinochet Shock, 2025, pp 259-286 from Springer Abstract: Abstract This chapter evaluates the economic and political factors behind the Chilean miracle, focusing on Pinochet’s regime and the transition to democracy. The analysis indicates that Chile’s remarkable economic growth stemmed from a credible commitment to limit government predation continuously reinforced during the democratic administrations. Edwar presents two main findings. First, a positive influence of Pinochet on Chile’s economic miracle is overestimated, as economic growth during his regime performed below that of a synthetic control constructed from similar countries that mirrored Chile’s growth prior to Pinochet. Second, using the same method, Edwar assesses the impact of the transition to democracy on economic growth. The most noticeable divergence in growth begins with the transition to democracy, as Chile is compared with a counterfactual that tracks well the path before the plebiscite in 1988. These results suggest that long-term growth is driven by the implementation of reforms and the expectation that these will remain in place, as evidenced by Chile’s transition to democracy. Date: 2025 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-78825-3_12 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-78825-3_12 Access Statistics for this chapter More chapters in Springer Books from Springer |
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