View metadata

dc.titleThe Geographic and Sectoral Impact of Productivity
dc.contributor.authorHuneeus, Federico
dc.contributor.authorDel Valle Fuentes, Miguel Angel
dc.contributor.orgunitCompetitiveness, Technology and Innovation Division
dc.coverageChile
dc.date.available2026-08-24T00:08:00
dc.date.issue2026-08-24T00:08:00
dc.description.abstractTo understand the geographic and sectoral impact of productivity, we build the first input-output matrix disaggregated at the geographic level within a country using unique administrative data harmonized to match national accounts. We use this data from Chile to calibrate a state-of-the-art general equilibrium quantitative trade model with production networks, labor mobility, firm selection, international and domestic trade, congestion of fixed factors, and knowledge diffusion. We consider two applications. First, we study the aggregate effects of local productivity shocks. We show that location-sector interactions are crucial: locations and sectors separately account for less than half of the dispersion in GDP elasticities from location-sector- specific productivity shocks. Geography-specific input-output linkages explain 16% of the dispersion, due to the role played by small and influential markets. Second, we analyze the exit of a large steel plant. We show that geographically disaggregated production linkages substantially increase the propagation of the plant exit.
dc.format.extent127
dc.identifier.doihttp://dx.doi.org/10.18235/0014477
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Geographic-and-Sectoral-Impact-of-Productivity.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectProductivity
dc.subjectGross Domestic Product
dc.subjectIntegration and Trade
dc.subjectLabor
dc.subjectSmall Business
dc.subjectValue Added
dc.subjectLabor Mobility
dc.subjectForest Resource
dc.subjectLabor Force
dc.subject.jelcodeF11 - Neoclassical Models of Trade
dc.subject.jelcodeF17 - Trade Forecasting and Simulation
dc.subject.jelcodeR15 - Econometric and Input—Output Models • Other Models
dc.subject.jelcodeD57 - Input—Output Tables and Analysis
dc.subject.jelcodeE01 - Measurement and Data on National Income and Product Accounts and Wealth • Environmental Accounts
dc.subject.jelcodeR12 - Size and Spatial Distributions of Regional Economic Activity
dc.subject.keywordsSpatial economics;Geographic distribution;Input-output linkages;Trade
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01858
idb.operationRG-T3976
Return to Publication