Market Reforms and Efficiency Gains in Chile

Estudios de Economía, Vol. 37, No. 2, pp. 217-242, December 2010

26 Pages Posted: 8 May 2011

See all articles by Raphael Bergoeing

Raphael Bergoeing

affiliation not provided to SSRN

Andrés Hernando Salazar

affiliation not provided to SSRN

Andrea Repetto

University of Chile - Engineering Department

Date Written: December 2010

Abstract

Starting in the mid 1970s, Chile implemented comprehensive structural market reforms. Using manufacturing plant-level data on Chilean firms for years 1980 to 2001, we estimate the role of reforms on efficiency. We analyze aggregate productivity constructed from micro data to find that in the aftermath of the reforms, efficiency gains were explained by within-plant improvements and by the net entry of new units. We also find that plants producing traded goods and plants facing liquidity constraints experienced the largest efficiency gains. Trade openness and a superior access to external finance seem to have partially accounted for the improvement in manufacturing performance.

Keywords: Plant dynamics, Productivity, Manufacturing, Chile

JEL Classification: L16, L60, O47, O12

Suggested Citation

Bergoeing, Raphael and Salazar, Andrés Hernando and Repetto, Andrea, Market Reforms and Efficiency Gains in Chile (December 2010). Estudios de Economía, Vol. 37, No. 2, pp. 217-242, December 2010, Available at SSRN: https://ssrn.com/abstract=1832719

Raphael Bergoeing (Contact Author)

affiliation not provided to SSRN ( email )

Andrés Hernando Salazar

affiliation not provided to SSRN ( email )

Andrea Repetto

University of Chile - Engineering Department ( email )

Republica 701 Santiago
Chile

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