Banco Central de ChileConferences
Fifth Annual Conference of the Central Bank of Chile
The Challenges of Economic Growth
Santiago, Chile, November 29 and 30, 2001
The Conference is organized around three topics. The first topic, Survey and Facts, is devoted to discussing what we know and do not know regarding economic growth from three viewpoints: the evidence on growth and its determinants, models of economic growth and their empirical support, and the relationship of economic growth with other aspects of development, such as poverty alleviation, employment generation, reduction of income inequality, decline of environmental concerns, and attenuation of crime and violence.
The second topic, Contributions on Growth, provides studies aimed at responding the following analytical questions: what is the potential impact of short-term fluctuations on long-run growth? Is economic growth a process of positive shocks with initially high growth rates that are followed by declining and eventually stagnating growth? Also the following empirical questions will be addressed: what is the impact of banks and stock markets on economic growth, capital accumulation, and total factor productivity growth? How would one distinguish between a slow recovery after a downturn from the switch to a new, slower long-run growth path? Is the evidence on convergence in per capita GDP adequately tested or are tests biased toward finding absolute non-convergence?
The third topic is devoted to Economic Growth in Chile. The papers in this area cover several aspects of long-run growth and economic cycles. Among them are the following. Which lessons on cross-country growth determinants can be derived for Chile? In what areas is Chile relatively strong or weak in comparison to other economies and which are their impacts on long-run growth? Which are the main determinants of potential growth in Chile – factor accumulation or TFP growth – and which are the prospects for growth? Which were the main determinants of Chile’s 1998-1999 recession? What are the most important sources of risk to economic growth in Chile? Is Chile’s external vulnerability a financial problem with serious growth effects?