End of the Supercycle and Growth of Commodity Producers: The Case of Chile
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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.
Series:
Working Paper No. 2015/242
Subject:
Commodities Commodity price shocks Commodity prices Metal prices Prices
English
Publication Date:
November 23, 2015
ISBN/ISSN:
9781513531557/1018-5941
Stock No:
WPIEA2015242
Pages:
27
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