Analysis Of Economic Specialization In The Atacama Region, Chile

Abstract

Some countries are made up of regions, which are in turn made up of provinces, and these are further divided into communes, which can be poor or rich. Some regions will experience faster economic growth, while others will not. All of these factors make it interesting to study the variables that influence regional economic growth, and to analyze how well-directed strategies seek to identify resources and opportunities, and then develop plans and economic policies in order to improve the region's competitiveness. In the search for desired regional economic growth, productive specialization emerges as a strategy that allows the region to achieve high levels of production and growth. However, many regions maintain productive specialization for years, but their Gross Domestic Product (GDP) does not increase significantly. This paper studies the contributions that the different economic sectors of the Atacama region make to the GDP, between the years 2011 and 2021. This territory is considered the gateway to the driest desert on the planet and is located north of Santiago, the capital city of Chile. The analysis uses statistical tools that, at first, calculate the absolute contributions of each productive sector to the region and the country. Then, proportional calculations are made to define the Specialization Index of each economic sector. Lastly, a Shift Share analysis estimates the economic advances or setbacks that the region has had over the 10-year horizon. This entire study is considered a basis and input when defining regional growth strategies. Additionally, it will serve to answer the following question: Has the productive specialization determined in the region allowed for greater economic growth?