TY - BOOK ID - 137686448 TI - Explaining Local Manufacturing Growth in Chile : The Advantages of Sectoral Diversity AU - Almeida, Rita AU - Fernandes, Ana M. PY - 2011 PB - Washington, D.C., The World Bank, DB - UniCat KW - Achieving Shared Growth KW - Agglomeration Economies KW - Economic Growth KW - Economic Theory & Research KW - International Economics & Trade KW - Knowledge Spillovers KW - Labor Policies KW - Local Growth KW - Political Economy KW - Total Factor Productivity Growth KW - Chile UR - https://www.unicat.be/uniCat?func=search&query=sysid:137686448 AB - This paper investigates whether the agglomeration of economic activity in regional clusters affects long-run manufacturing total factor productivity growth in an emerging market context. It explores a large firm-level panel dataset for Chile during a period characterized by high growth rates and rising regional income inequality (1992-2004). The findings are clear-cut. Locations with greater concentration of a particular sector did not experience faster growth in total factor productivity during this period. Rather, local sector diversity was associated with higher long-run growth in total factor productivity. However, there is no evidence that the diversity effect was driven by the local interaction with a set of suppliers and/or clients. The authors interpret this as evidence that agglomeration economies are driven by other factors, such as the sharing of access to specialized inputs not provided solely by a single sector, such as skills or financing. ER -