End of the Supercycle and Growth of Commodity Producers : The Case of Chile /

This paper estimates the effect of copper prices on Chile's growth at various time horizons. We find that a price decline is likely to have a durable (although not permanent) effect on GDP growth: while the impact is the strongest in the first 3 years after the shock, the transition towards the...

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Bibliographic Details
Main Author: Eyraud, Luc
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2015.
Series:IMF Working Papers; Working Paper ; No. 2015/242
Subjects:
Online Access:Full text available on IMF
Description
Summary:This paper estimates the effect of copper prices on Chile's growth at various time horizons. We find that a price decline is likely to have a durable (although not permanent) effect on GDP growth: while the impact is the strongest in the first 3 years after the shock, the transition towards the new lower steady-state GDP level generally takes 5-10 years. From a production function perspective, the GDP growth slowdown is mainly driven by lower capital accumulation.
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Physical Description:1 online resource (27 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students