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The Political Economy of Productivity in Argentina: Interpretation and Illustration

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  • Urbiztondo, Santiago
  • Cristini, Marcela
  • Moskovits, Cynthia
  • Saiegh, Sebastián

Abstract

This paper examines how the main characteristics of Argentinas policymaking process (PMP) affect the productivity of its economy using the conceptual framework presented in Murillo, Scartascini and Tommasi (2008), Stein et al. (2008), Spiller and Tommasi (2007), and IDB (2005). First, the paper complements existing descriptions of the PMP by considering private agents and elaborating on structural characteristics possibly conducive to policymaking instability. Second, the paper illustrates the (negative) impact of Argentinas low-quality and myopic PMP equilibrium on productivity by examining two key areas: provision of infrastructure services and agricultural policy. Finally, the paper explores the PMP at the local level of government (municipalities and local communities), finding that it mimics the flaws observed at the federal level.

Suggested Citation

  • Urbiztondo, Santiago & Cristini, Marcela & Moskovits, Cynthia & Saiegh, Sebastián, 2009. "The Political Economy of Productivity in Argentina: Interpretation and Illustration," IDB Publications (Working Papers) 1119, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:1119
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    References listed on IDEAS

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    1. Pablo T. Spiller & Ernesto H. Stein & Mariano Tommasi & Carlos Scartascini & Lee J. Alston & Marcus André Melo & Bernardo Mueller & Carlos Pereira & Cristóbal Aninat & John Londregan & Patricio Navia , 2008. "Policymaking in Latin America: How Politics Shapes Policies," IDB Publications (Books), Inter-American Development Bank, number 40178 edited by Ernesto H. Stein & Mariano Tommasi & Pablo T. Spiller & Carlos Scartascini, February.
    2. Cavallo, Domingo & Mundlak, Yair, 1982. "Agriculture and economic growth in an open economy: the case of Argentina," Research reports 36, International Food Policy Research Institute (IFPRI).
    3. Spiller, Pablo T. & Stein, Ernesto H. & Tommasi, Mariano & Scartascini, Carlos & Alston, Lee J. & Melo, Marcus André & Mueller, Bernardo & Pereira, Carlos & Aninat, Cristóbal & Londregan, John & Navia, 2008. "Policymaking in Latin America: How Politics Shapes Policies," IDB Publications (Books), Inter-American Development Bank, number 329, November.
    4. Iaryczower, Matias & Spiller, Pablo T. & Tommasi, Mariano, 2006. "Judicial Lobbying: The Politics of Labor Law Constitutional Interpretation," American Political Science Review, Cambridge University Press, vol. 100(1), pages 85-97, February.
    5. Mariano Tommasi & Sebastian Saiegh & Pablo Sanguinetti, 2001. "Fiscal Federalism in Argentina: Policies, Politics, and Institutional Reform," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 157-212, January.
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    7. Sebastián M. Saiegh & Mariano Tommasi, 1999. "Why is Argentina's Fiscal Federalism so Inefficient? Entering the Labyrinth," Journal of Applied Economics, Taylor & Francis Journals, vol. 2(1), pages 169-209, May.
    8. Rafael Di Tella & Robert MacCulloch, 2009. "Why Doesn't Capitalism Flow to Poor Countries?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(1 (Spring), pages 285-332.
    9. Lilyan E. Fulginiti & Richard K. Perrin, 1990. "Argentine Agricultural Policy in a Multiple-Input, Multiple-Output Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 279-288.
    10. Luis Serven & César Calderon, 2004. "The Effects of Infrastructure Development on Growth and income," Econometric Society 2004 Latin American Meetings 173, Econometric Society.
    11. Pande, Rohini, 2005. "Profits and Politics: Coordinating Technology Adoption in Agriculture," Center Discussion Papers 28383, Yale University, Economic Growth Center.
    12. Juliana Bambaci & Tamara Saront & Mariano Tommasi, 2002. "The Political Economy of Economic Reforms in Argentina," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(2), pages 75-88.
    13. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    14. Rohini Pande, 2005. "Profits and Politics: Coordinating Technology Adoption in Agriculture," Working Papers 922, Economic Growth Center, Yale University.
    15. repec:idb:brikps:40178 is not listed on IDEAS
    16. Coremberg, Ariel Alberto & Goldszier, Patricia & Heymann, Daniel & Ramos, Adrián, 2007. "Patrones de la inversión y el ahorro en la Argentina," Macroeconomía del Desarrollo 5434, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    17. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    Cited by:

    1. Fabiana Machado & Carlos Scartascini & Mariano Tommasi, 2011. "Political Institutions and Street Protests in Latin America," Journal of Conflict Resolution, Peace Science Society (International), vol. 55(3), pages 340-365, June.
    2. Daniel Artana & Sebastian Auguste & Marcela Cristini & Cynthia Moskovitz & Ivana Templado, 2012. "Sub-National Revenue Mobilization in Latin American and Caribbean Countries: The Case of Argentina," Research Department Publications 4765, Inter-American Development Bank, Research Department.

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    More about this item

    Keywords

    IDB-WP-102;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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