End of the Supercycle and Growth of Commodity Producers

Download or read book End of the Supercycle and Growth of Commodity Producers written by Luc Eyraud and published by International Monetary Fund. This book was released on 2015-11-23 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper estimates the effect of copper prices on Chile’s growth at various time horizons. We find that a price decline is likely to have a durable (although not permanent) effect on GDP growth: while the impact is the strongest in the first 3 years after the shock, the transition towards the new lower steady-state GDP level generally takes 5–10 years. From a production function perspective, the GDP growth slowdown is mainly driven by lower capital accumulation.