Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210024
Authors: 
Chen, Kaiji
Irarrazabal, Alfonso
Year of Publication: 
2013
Series/Report no.: 
Working Paper 2013/01
Abstract: 
The Chilean economy experienced a decade of sustained growth in aggregate out-put and productivity after the 1982 financial crisis. This paper analyzes the effects of resource misallocation on total factor productivity (TFP) of the manufacturing sector by applying the methodology of Hsieh and Klenow (2009) to the establishment data from the Chilean manufacturing census. We find that a reduction in resource misallocation accounts for about 46 percent of the growth in manufacturing TFP between 1983 and 1996. The improvement in allocative efficiency, moreover, is essentially driven by a reduction in the cross-sectional dispersion of output distortion. In particular, a reduction in the least productive plants.output subsidies is the most important reason for the reduction in resource misallocation during this period.
Subjects: 
TFP
Chile
total factor productivity
misallocation
JEL: 
O11
O47
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-715-5
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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