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dc.titleProductivity and Innovation Shortfalls in the Andean Region
dc.contributor.authorMoreno, Kenji
dc.contributor.authorDeza, María Cecilia
dc.contributor.orgunitCountry Department Andean Group
dc.coverageBolivia
dc.coverageColombia
dc.coverageEcuador
dc.coveragePeru
dc.coverageSouth America
dc.date.available2022-11-30T00:11:00
dc.date.issue2022-11-30T00:11:00
dc.description.abstractThis paper studies productivity in the Andean region in detail between 1990 and 2018. To do this, a growth accounting analysis is carried out, considering adjustments for quality and utilization of production factors. Subsequently, the paper explores whether the productivity gap between the Andean region and developed countries results from an innovation shortfall (low R&D investment level) or an accumulation problem. Several findings emerged. First, the absence of adjustments for quality and utilization of production factors generates more optimistic (and biased) estimates of TFP than when such adjustments are incorporated. Second, the link between productivity and the terms of trade has been heterogeneous across the Andean countries. Third, all Andean countries experience innovation shortfalls: innovation level is below expected due to the high cost of innovation adoption and to the policy distortions that have persisted over the last three decades. In that way, we warn of the diminishing contribution of productivity in the Andean countries' growth and highlight the need to establish more favorable conditions for innovation.
dc.format.extent29
dc.identifier.doihttp://dx.doi.org/10.18235/0004599
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Productivity-and-Innovation-Shortfalls-in-the-Andean-Region.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Productividad-y-deficits-de-innovacion-en-la-Region-Andina.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectProductivity
dc.subjectDebtor Finance
dc.subjectInnovation
dc.subjectResearch and Development
dc.subjectLabor Force
dc.subjectHuman Capital
dc.subjectEconomic Development
dc.subject.jelcodeO11 - Macroeconomic Analyses of Economic Development
dc.subject.jelcodeO30 - Innovation • Research and Development • Technological Change • Intellectual Property Rights: General
dc.subject.jelcodeO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsTerms of trade;Andean Region;R&D;Productivity;Economic Development
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02596
idb.operationRG-T3717
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