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Agricultural institutions, industrialization and growth: The case of New Zealand and Uruguay in 1870-1940

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  • Álvarez, Jorge
  • Bilancini, Ennio
  • D'Alessandro, Simone
  • Porcile, Gabriel

Abstract

In this paper we apply a model of early industrialization to the case of New Zealand and Uruguay in 1870-1940. We show how differences in agricultural institutions may have produced different development paths in two countries which were similar under many respects. While in New Zealand the active role of the Crown in regulating the land market facilitated access to land, in Uruguay land was seized by a small group of large landowners. Our model shows that land concentration may have negatively influenced industrialization and growth by impeding the formation of a large group of middle-income landowners and, as a consequence, the development of a domestic demand for basic manufactures. We support this view with a comparative analysis of agricultural institutions and industrial development in New Zealand and Uruguay.

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Bibliographic Info

Article provided by Elsevier in its journal Explorations in Economic History.

Volume (Year): 48 (2011)
Issue (Month): 2 (April)
Pages: 151-168

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Handle: RePEc:eee:exehis:v:48:y:2011:i:2:p:151-168

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Web page: http://www.elsevier.com/locate/inca/622830

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Keywords: Agricultural institutions Industrialization Growth New Zealand Uruguay functional distribution Agricultural surplus;

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References

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Cited by:
  1. Jorge Álvarez, 2013. "The evolution of inequality in Australasia and the River Plate, 1870-1914," Documentos de trabajo 31, Programa de Historia Económica, FCS, Udelar.
  2. Ennio Bilancini, 2010. "On the Rationalizability of Observed Consumers Choise when Prefeerences else," Department of Economics 0636, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".

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