Microeconomic flexibility in Latin America
By: Ricardo J. Caballlero, Eduardo Engel, Alejandro Micco.
Contributors: Engel, Eduardo.; Micco, Alejandro.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10398; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10398.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Industrial productivity -- Chile.; Latin America -- Economic conditions.
Description: "We characterize the degree of microeconomic inflexibility in several Latin American economies and find that Brazil, Chile and Colombia are more flexible than Mexico and Venezuela.  The difference in flexibility among these economies is mainly explained by the behavior of large establishments, which adjust more promptly in the more flexible economies, especially when accumulated shocks are substantial.  We also study the path of flexibility in Chile and show that it declined in the aftermath of the Asian crisis.  This decline can account for a substantial fraction of the large decline in TFP-growth in Chile since 1997 (from 3.1 percent per year for the preceding decade, to about 0.3 percent after that).  Moreover, if it were to persist, it could permanently shave off almost half of a percent from Chile's structural rate of growth"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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