Abstract

This document analyzes the impact of the implementation of the Public Works Concessions Law (COP) on Chile’s economic growth, using the synthetic control method to construct a counterfactual representing the performance of GDP per capita in the absence of the intervention. Based on GDP per capita data from Chile and seven selected Latin American countries for the period 1980-1993, a synthetic model was developed that minimizes pre-intervention differences. The results indicate that, following the implementation of the policies in 1994, Chile’s GDP per capita began to significantly diverge from the synthetic counterfactual, particularly from 2002 onwards, suggesting a significant positive impact of the PPPs¹ policies on the country’s economic growth.

Keywords:
Impact; public works concessions; economic growth; Chile; synthetic control; latin american countries; gross domestic product; public-private partnership