Chilean Export Performance: the Role of Intensive and Extensive Marginss

Abstract

The paper presents a detailed description of the evolution of non-copper exports in the 1990-2007 period and decomposes its evolution in terms of the intensive and extensive margins. I document a significant export diversification in terms of markets and products. In the product dimension, diversification has occurred both for overall exports but also within the main exporting markets. In addition, the decomposition of exports growth into intensive margin (persistent exports) and extensive margins (new exports) indicates that export growth at the extensive margin contributed significantly to overall non-copper export growth, and particularly in the first half of the period.