1. Chile’s Economic Growth Joel Cohen Vidaur Durazo

2. History of Economic Growth & Volatility 1986-2005 – 4.8% GDP per capita Growth Exceeds world average of 1.4% – 3.1% Standard Deviation (Low Relative 1810-2005 – 1.7% GDP per capita Growth With periods of negative growth – 6.3% Standard Deviation

3. History of Economic Growth & Volatility

4. External Economic Shocks 1.WW1 2.Declining world demand of Chilean nitrate 3.Great Depression - Greatest GDP loss in the world (1930-1932)

5. History of Economic Growth (Political Explanations) Post Great Depression – Import Substitution Strategy based on government led industrialization strategy. – Strategy peaked in 1970-1973 – After 1974 Military Coup, Market based policies, deregulation – Structural reforms in 1970-80s lead to macroeconomic stability.

6. Chilean Economic Growth: International Comparison

7. World Growth Determinants

8. Regional & Sector Growth (1960-2005)

9. Regional Income Convergence

10. Sector Level TFP Dynamics Sources of Growth at Economic Sector Level:

11. World Growth

12. Estimates for Sources of Chilean Growth

13. Deep Growth Determinants Domestic Policies Quality of Institutions International Factors Geography Luck

14. Cyclical Growth

15. Questions & Concerns