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Institutional instability and growth in Argentina: a long-run view

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Abstract

Argentina has slipped from being among the ten richest countries in the world by the eve of World War I to its current position close to developing countries. What did originate Argentina's economic retardation?. In this paper we employ a structural model to investigate the extent to which institutional instability, as captured by "Contract Intensive Money" (Clague, Keefer, Knack and Olson, 1999), conditioned capital accumulation and economic growth in Argentina and, consequently, the country's relative international position. Our results suggest that institutional instability played a major role in Argentina's unique historical experience of economic decline.

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  • Sanz Villarroya, Isabel, 2004. "Institutional instability and growth in Argentina: a long-run view," IFCS - Working Papers in Economic History.WH wh046705, Universidad Carlos III de Madrid. Instituto Figuerola.
    • Handle: RePEc:cte:whrepe:wh046705
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    References listed on IDEAS

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    1. Taylor, Alan M., 1994. "Tres fases del crecimiento económico argentino," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 12(3), pages 649-683, December.
    2. Peter L. Rousseau & Richard Sylla, 2003. "Financial Systems, Economic Growth, and Globalization," NBER Chapters, in: Globalization in Historical Perspective, pages 373-416, National Bureau of Economic Research, Inc.
    3. Taylor, Alan M., 1992. "External Dependence, Demographic Burdens, and Argentine Economic Decline After the Belle Époque," The Journal of Economic History, Cambridge University Press, vol. 52(4), pages 907-936, December.
    4. Taylor, Alan M & Williamson, Jeffrey G, 1994. "Capital Flows to the New World as an Intergenerational Transfer," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 348-371, April.
    5. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    6. Gwartney, James & Lawson, Robert, 2003. "The concept and measurement of economic freedom," European Journal of Political Economy, Elsevier, vol. 19(3), pages 405-430, September.
    7. Taylor, Alan M., 1998. "On the Costs of Inward-Looking Development: Price Distortions, Growth, and Divergence in Latin America," The Journal of Economic History, Cambridge University Press, vol. 58(1), pages 1-28, March.
    8. Paolera, Gerardo Della & Taylor, Alan M., 1999. "Economic Recovery from the Argentine Great Depression: Institutions, Expectations, and the Change of Macroeconomic Regime," The Journal of Economic History, Cambridge University Press, vol. 59(3), pages 567-599, September.
    9. Taylor, Alan M., 1998. "Argentina and the world capital market: saving, investment, and international capital mobility in the twentieth century," Journal of Development Economics, Elsevier, vol. 57(1), pages 147-184, October.
    10. Roberto Cortes Conde, 1998. "Fiscal Crisis and Inflation in XIX Century Argentina," Working Papers 18, Universidad de San Andres, Departamento de Economia, revised Nov 1998.
    11. Clague, Christopher & Keefer, Philip & Knack, Stephen & Olson, Mancur, 1999. "Contract Intensive Money," MPRA Paper 25717, University Library of Munich, Germany.
    12. Blanca Sánchez‐Alonso, 2019. "The age of mass migration in Latin America," Economic History Review, Economic History Society, vol. 72(1), pages 3-31, February.
    13. Clague, Christopher & Keefer, Philip & Knack, Stephen & Olson, Mancur, 1999. "Contract-Intensive Money: Contract Enforcement, Property Rights, and Economic Performance," Journal of Economic Growth, Springer, vol. 4(2), pages 185-211, June.
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    Cited by:

    1. Alston, Lee J. & Gallo, Andrés A., 2010. "Electoral fraud, the rise of Peron and demise of checks and balances in Argentina," Explorations in Economic History, Elsevier, vol. 47(2), pages 179-197, April.
    2. Emilio Ocampo, 2015. "Commodity Price Booms and Populist Cycles. An Explanation of Argentina’s Decline in the 20th Century," CEMA Working Papers: Serie Documentos de Trabajo. 562, Universidad del CEMA.

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