Suchergebnisse

Cover Page -- Title Page -- Copyright Page -- Contents -- Tables -- Figures -- Appendixes -- I. Introduction -- 1. Banks' Domestic Sovereign Holdings/Total Bank Assets and Public Debt -- II. Literature Review -- III. Empirical Analysis on Home Bias -- 1. Summary of Home Bias Indicators (average, 2005-07 and 2009-11) -- 2. Average Public Debt (2007) and Home Bias (average, 2005-07) -- A. Borrowing Costs of Sovereigns -- 3. Bond Spreads and Home Bias in AMs -- 4. EM Sovereigns Borrowing Costs in the Domestic Market -- 5. Estimated GARCH Correlations with VIX -- 2. Average EM and AM Estimated GARCH Correlations with VIX -- B. Public Debt -- 6. Public Debt-to-GDP and Home Bias (Average, 2005-07) -- C. Primary Balance Adjustments -- 7. Fiscal Policy Reactions and Home Bias -- 3. Estimated Fiscal Policy Reactions -- D. Debt under Distress -- 8. Debt Distress and Home Bias -- E. Robustness Tests -- IV. Other Home Bias Issues -- V. Conclusion -- I. Computations of Home Bias Indicators -- II. Details and Sources of Macroeconomic Variables -- III. Outline of the DCC GARCH Method -- A1. Regression of Bond Spreads-(1) AM -- A2. Regression of Bond Yields-(2) EM -- A3. Regression of the Public Debt/GDP-AM, EM, AM&EM -- A4. Regression of the Fiscal Reaction Function-AM, EM, AM&EM -- A5. Robustness Check for Bond Spreads Regression-AM, EM -- A6. Robustness Check for Public Debt Regression -- A7. Robustness Check for Fiscal Reaction Function Regression-AM -- References -- Footnotes

Chile could well have space to increase its growth potential by 2 percentage points of Gross Domestic Product (GDP) per year. To do this, it would need to pay more attention to new sources of growth in natural resources, manufacturing, and services. In an increasingly globalized world, first-mover advantages have become more numerous and larger. Chile risks losing out, as a few recent high-profile cases suggest. Chile's total factor productivity growth can be raised by driving within-firm technological change closer to the global best-practice frontier more rapidly, especially in manufacturing. This would encourage the diversification of exports and boost Chile's supply response to global demand changes. Chile confronts obstacles in its processes of innovation, human capital accumulation, and investment. To overcome them, deep institutional changes are needed to develop a national innovation system, stronger and more equitable educational achievement, more flexible labor markets, and focused public investments that crowd in private business. Such an inclusive growth strategy is likely to yield better social outcomes than a strategy that attempts to confront social inequities head-on through more equitable access to public services without paying adequate attention to the demand for labor and generation of income. Chile could also try a new policy towards innovation, but it would need to be bolder in terms of the institutional design to maximize the chances of success.