The purpose of this paper is to estimate total factor productivity growth by sector of activity for the Chilean economy in 1986-2001. The main problem that we face is the lack of data on the stock of capital by sector for the whole period. We design a methodology to generate capital stock series by sector. After adjusting the generated series on the stock of capital by an utilization factor and the employment series by their relative quality, we estimate TFP by sector. Our results indicate that the sector with the largest productivity increase in this period has been commerce. Our results match evidence from other countries where it has been found that the sectors with the largest increase in productivity are those sectors that use intensively information technology.
Instituto de Economía - Facultad de Ciencias Económicas y Administrativas - Pontificia Universidad Católica de Chile
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