The paper discusses the development of Chile's export sector for the 1990-2007 period, especially at manufacturing levels, hence seeking to investigate the relationship between export dynamics and plant productivity. This being said, the authors argue that since 1975, Chilean exports have grown at an average annual rate of 6%, thus leading the export sector, especially the manufacturing, to strengthen both at regional and global level. Furthermore, according to the research, Chile’s performance in terms of exports is attributable in large part to the following: new exporters; a greater proportion of exporting plants; and a growing proportion of exported production.
The paper is organized as follows. After a brief introduction, the second section presents Chile’s trade reforms and current economic boom, whilst the third section provides a detailed description of the data used in research. For its part, the fourth chapter takes a look into exports in order to explore the main sources of growth and productivity. Finally, conclusions are presented in the fifth and last section.
In conclusion, the authors argue that 64.4% of the total increase in Chile’s exports is due to new exporters. This result arises by combining a higher share of exporting plants, an increasing proportion of export production and the growth of total sales. Also, the article suggests that Chilean productivity and exports are positively correlated with the increase in productivity in exporting plants.