Local Economic Development Through Export-Led Growth: The Chilean Case

Figure 1 depicts the unconditional correlation between the change in poverty rate (FGT0) and the change in exports between 2000 and 2006 at the level of Chilean local labor markets (LLMs). [...] The change in exports across LLMs (horizontal axis) measured as the interaction of local industry employment shares in 1992 and the evolution of (log) exports across industries between 2000 and 2006. [...] EE is a measure of exports exposure at the LLM-level, constructed as the interaction between the pre-shock pattern of industrial composition in each LLM, as given by the local industry employment share in 1992 (w1992rj ), and the log value of exports at the industry-level: ∑ EElt = w 1992 lj Log(exports)jt (2) j Dependent variables (Ylt) are labor market outcomes such as the labor informality rate. [...] The change in exports exposure-left (the change in export tariffs-right) across LLMs measured as the interaction of local industry employment shares in 1992 and the evolution of log exports (average tariffs cuts) across industries and time. [...] The change in export tariffs across LLMs (horizontal axis) measured as the interaction of local industry employment shares in 1992 and the evolution of average tariffs cuts across industries between 2000 and 2006.