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The Politics of Institutional Renovation and Economic Upgrading: Recombining the Vines That Bind in Argentina

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  • Gerald A. McDermott

    (Wharton School of the University of Pennsylvania, Department of Political Science, mcdermott@wharton.upenn.edu)

Abstract

Through a comparative, longitudinal analysis of the wine industry in two Argentine provinces, this article finds that different political approaches to reform and not simply socioeconomic endowments determine the ability of societies to build new institutions for economic upgrading. A “depoliticization†approach emphasizes the imposition of arm’s-length incentives by a powerful, insulated government but exacerbates social fragmentation and impedes upgrading. A “participatory restructuring†approach promotes the creation and maintenance of new public-private institutions for upgrading via rules of inclusive membership and multiparty, deliberative governance. This latter approach can facilitate collaboration and knowledge creation among the government and previously isolated, even antagonistic, stakeholder groups.

Suggested Citation

  • Gerald A. McDermott, 2007. "The Politics of Institutional Renovation and Economic Upgrading: Recombining the Vines That Bind in Argentina," Politics & Society, , vol. 35(1), pages 103-144, March.
    • Handle: RePEc:sae:polsoc:v:35:y:2007:i:1:p:103-144
    DOI: 10.1177/0032329206297185
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    References listed on IDEAS

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    9. Paola Perez-Aleman, 2010. "Standards as Institutions Supporting the Cluster Emergence Process: The Case of Aquaculture in Chile," Chapters, in: Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), Emerging Clusters, chapter 7, Edward Elgar Publishing.
    10. Breznitz, Dan & Zehavi, Amos, 2010. "The limits of capital: Transcending the public financer-private producer split in industrial R&D," Research Policy, Elsevier, vol. 39(2), pages 301-312, March.
    11. Paola Perez-Aleman, 2011. "Collective Learning in Global Diffusion: Spreading Quality Standards in a Developing Country Cluster," Organization Science, INFORMS, vol. 22(1), pages 173-189, February.
    12. Ponte, Stefano & Ewert, Joachim, 2009. "Which Way is "Up" in Upgrading? Trajectories of Change in the Value Chain for South African Wine," World Development, Elsevier, vol. 37(10), pages 1637-1650, October.
    13. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    14. Morrison, Andrea & Rabellotti, Roberta, 2017. "Gradual catch up and enduring leadership in the global wine industry," Research Policy, Elsevier, vol. 46(2), pages 417-430.
    15. Dan Breznitz & Mollie Taylor, 2011. "California Dreaming? Cross-Cluster Embeddedness and the Systematic Non-Emergence of the 'Next Silicon Valley'," DRUID Working Papers 11-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    16. Artopoulos, Alejandro & Friel, Daniel & Hallak, Juan Carlos, 2013. "Export emergence of differentiated goods from developing countries: Export pioneers and business practices in Argentina," Journal of Development Economics, Elsevier, vol. 105(C), pages 19-35.
    17. V.Yu. Chernova & Z.G. Golodova & E.A. Degtereva & A.M. Zobov & V.S. Starostin, 2018. "Russian Industry in Global Value-Added Chains," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 165-178.
    18. Kenney, Martin, 2013. "Commercialization or Engagement: Which Is of More Significance to the U.S. Economy ?," ETLA Working Papers 13, The Research Institute of the Finnish Economy.
    19. Mair, Johanna & Marti, Ignasi, 2009. "Entrepreneurship in and around institutional voids: A case study from Bangladesh," Journal of Business Venturing, Elsevier, vol. 24(5), pages 419-435, September.
    20. Gartzou-Katsouyanni, Kira, 2023. "Obstacles to local cooperation in fragmented, left-behind economies: an integrated framework," LSE Research Online Documents on Economics 120795, London School of Economics and Political Science, LSE Library.
    21. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.

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