Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity

This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during...

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Main Authors:	Almeida, Rita, Fernandes, Ana M.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTING AIR POLLUTION ANNUAL DEPRECIATION RATE ATTRITION BOOK VALUE CAPITAL STOCK CAPITALISM CENTRAL BANK COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS COMPETITIVE ENVIRONMENT CONCEPT OF KNOWLEDGE DEBT DEMOCRACY DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DISAGGREGATED LEVEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC IMPLICATIONS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMIC THEORY ECONOMICS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPLOYMENT EMPLOYMENT GROWTH ERROR TERM EXTERNALITIES EXTERNALITY FIRST YEAR FIXED EFFECTS FORECASTS FOREIGN DIRECT INVESTMENT FREE PRESS FUNCTIONAL FORM GDP GDP PER CAPITA GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROSS FIXED CAPITAL FORMATION GROWTH PATTERN GROWTH RATE GROWTH RATES HIGH CONCENTRATION HIGH GROWTH HISTORICAL CONTEXT IMPERFECT COMPETITION INCOME INCOME INEQUALITY INCREASE IN LABOR INCREASING RETURNS INDUSTRIAL DEVELOPMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INVENTORY KNOWLEDGE DIFFUSION KNOWLEDGE SHARING LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LONG-RUN GROWTH MONETARY ECONOMICS MONOPOLY MONOPOLY RENTS NATURAL RESOURCES NEGATIVE EFFECT NET INVESTMENT OUTPUT GROWTH OUTPUT OF SECTOR PERFECT COMPETITION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RENTS SECTORAL COMPOSITION SKILLED LABOR SOCIALISM SPECIALIZATION STANDARD DEVIATION SUPPLIERS TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TELECOMMUNICATIONS TFP TOTAL CAPITAL STOCK TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE LIBERALIZATION VARIABLE INPUTS WAGES
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111201165345 http://hdl.handle.net/10986/3659

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spelling	okr-10986-36592021-04-23T14:02:11Z Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity Almeida, Rita Fernandes, Ana M. ACCOUNTING AIR POLLUTION ANNUAL DEPRECIATION RATE ATTRITION BOOK VALUE CAPITAL STOCK CAPITALISM CENTRAL BANK COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS COMPETITIVE ENVIRONMENT CONCEPT OF KNOWLEDGE DEBT DEMOCRACY DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DISAGGREGATED LEVEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC IMPLICATIONS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMIC THEORY ECONOMICS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPLOYMENT EMPLOYMENT GROWTH ERROR TERM EXTERNALITIES EXTERNALITY FIRST YEAR FIXED EFFECTS FORECASTS FOREIGN DIRECT INVESTMENT FREE PRESS FUNCTIONAL FORM GDP GDP PER CAPITA GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROSS FIXED CAPITAL FORMATION GROWTH PATTERN GROWTH RATE GROWTH RATES HIGH CONCENTRATION HIGH GROWTH HISTORICAL CONTEXT IMPERFECT COMPETITION INCOME INCOME INEQUALITY INCREASE IN LABOR INCREASING RETURNS INDUSTRIAL DEVELOPMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INVENTORY KNOWLEDGE DIFFUSION KNOWLEDGE SHARING LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LONG-RUN GROWTH MONETARY ECONOMICS MONOPOLY MONOPOLY RENTS NATURAL RESOURCES NEGATIVE EFFECT NET INVESTMENT OUTPUT GROWTH OUTPUT OF SECTOR PERFECT COMPETITION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RENTS SECTORAL COMPOSITION SKILLED LABOR SOCIALISM SPECIALIZATION STANDARD DEVIATION SUPPLIERS TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TELECOMMUNICATIONS TFP TOTAL CAPITAL STOCK TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE LIBERALIZATION VARIABLE INPUTS WAGES This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992-2004). The findings are clear-cut. Locations with greater concentration of a particular sector did not experience faster growth in total factor productivity during this period. Rather, local sector diversity was associated with higher long-run growth in total factor productivity. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. The authors interpret this as evidence that agglomeration economies are driven by other factors, such as the sharing of access to specialized inputs not provided solely by a single sector, such as skills or financing. 2012-03-19T18:06:22Z 2012-03-19T18:06:22Z 2011-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111201165345 http://hdl.handle.net/10986/3659 English Policy Research working paper ; no. WPS 5891 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Chile
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING AIR POLLUTION ANNUAL DEPRECIATION RATE ATTRITION BOOK VALUE CAPITAL STOCK CAPITALISM CENTRAL BANK COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS COMPETITIVE ENVIRONMENT CONCEPT OF KNOWLEDGE DEBT DEMOCRACY DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DISAGGREGATED LEVEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC IMPLICATIONS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMIC THEORY ECONOMICS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPLOYMENT EMPLOYMENT GROWTH ERROR TERM EXTERNALITIES EXTERNALITY FIRST YEAR FIXED EFFECTS FORECASTS FOREIGN DIRECT INVESTMENT FREE PRESS FUNCTIONAL FORM GDP GDP PER CAPITA GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROSS FIXED CAPITAL FORMATION GROWTH PATTERN GROWTH RATE GROWTH RATES HIGH CONCENTRATION HIGH GROWTH HISTORICAL CONTEXT IMPERFECT COMPETITION INCOME INCOME INEQUALITY INCREASE IN LABOR INCREASING RETURNS INDUSTRIAL DEVELOPMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INVENTORY KNOWLEDGE DIFFUSION KNOWLEDGE SHARING LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LONG-RUN GROWTH MONETARY ECONOMICS MONOPOLY MONOPOLY RENTS NATURAL RESOURCES NEGATIVE EFFECT NET INVESTMENT OUTPUT GROWTH OUTPUT OF SECTOR PERFECT COMPETITION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RENTS SECTORAL COMPOSITION SKILLED LABOR SOCIALISM SPECIALIZATION STANDARD DEVIATION SUPPLIERS TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TELECOMMUNICATIONS TFP TOTAL CAPITAL STOCK TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE LIBERALIZATION VARIABLE INPUTS WAGES
spellingShingle	ACCOUNTING AIR POLLUTION ANNUAL DEPRECIATION RATE ATTRITION BOOK VALUE CAPITAL STOCK CAPITALISM CENTRAL BANK COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGE OF NATIONS COMPETITIVE ENVIRONMENT CONCEPT OF KNOWLEDGE DEBT DEMOCRACY DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPMENT INDICATORS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DISAGGREGATED LEVEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC IMPLICATIONS ECONOMIC STRUCTURE ECONOMIC STUDIES ECONOMIC THEORY ECONOMICS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPLOYMENT EMPLOYMENT GROWTH ERROR TERM EXTERNALITIES EXTERNALITY FIRST YEAR FIXED EFFECTS FORECASTS FOREIGN DIRECT INVESTMENT FREE PRESS FUNCTIONAL FORM GDP GDP PER CAPITA GEOGRAPHIC LOCALIZATION GEOGRAPHIC LOCALIZATION OF KNOWLEDGE SPILLOVERS GROSS FIXED CAPITAL FORMATION GROWTH PATTERN GROWTH RATE GROWTH RATES HIGH CONCENTRATION HIGH GROWTH HISTORICAL CONTEXT IMPERFECT COMPETITION INCOME INCOME INEQUALITY INCREASE IN LABOR INCREASING RETURNS INDUSTRIAL DEVELOPMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INVENTORY KNOWLEDGE DIFFUSION KNOWLEDGE SHARING LABOR DEMAND LABOR FORCE LABOR INPUT LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LONG-RUN GROWTH MONETARY ECONOMICS MONOPOLY MONOPOLY RENTS NATURAL RESOURCES NEGATIVE EFFECT NET INVESTMENT OUTPUT GROWTH OUTPUT OF SECTOR PERFECT COMPETITION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH RENTS SECTORAL COMPOSITION SKILLED LABOR SOCIALISM SPECIALIZATION STANDARD DEVIATION SUPPLIERS TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TELECOMMUNICATIONS TFP TOTAL CAPITAL STOCK TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL OUTPUT TRADE LIBERALIZATION VARIABLE INPUTS WAGES Almeida, Rita Fernandes, Ana M. Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
geographic_facet	Latin America & Caribbean Latin America & Caribbean South America America Chile
relation	Policy Research working paper ; no. WPS 5891
description	This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992-2004). The findings are clear-cut. Locations with greater concentration of a particular sector did not experience faster growth in total factor productivity during this period. Rather, local sector diversity was associated with higher long-run growth in total factor productivity. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. The authors interpret this as evidence that agglomeration economies are driven by other factors, such as the sharing of access to specialized inputs not provided solely by a single sector, such as skills or financing.
format	Publications & Research :: Policy Research Working Paper
author	Almeida, Rita Fernandes, Ana M.
author_facet	Almeida, Rita Fernandes, Ana M.
author_sort	Almeida, Rita
title	Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
title_short	Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
title_full	Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
title_fullStr	Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
title_full_unstemmed	Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity
title_sort	explaining local manufacturing growth in chile : the advantages of sectoral diversity
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111201165345 http://hdl.handle.net/10986/3659
_version_	1764387673181519872

Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity

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