Structural change in Argentina, 1935â€“60: The role of import substitution and factor endowments
AbstractThis paper investigates structural change in Argentina between 1935 and 1960, a period of rapid industrialization and of relative decline of the agricultural sector. This has been the subject of a long-running debate that has exercised Argentine economists throughout the twentieth century, and remains politically salient today. It has been argued that this this relative decline of agriculture was due to the policies of import-substituting industrialization (ISI). This was also the period, however, that directly followed the closing of the land frontier, resulting in a declining land-labor ratio as the population continued to grow. We use a stylized, dynamic three-sector computable general equilibrium (CGE) model of the period to analyze the respective effects of ISI policies and the observed changes in factor endowments on the structure of the economy. We find that the declining land-labor ratio was more important than ISI in explaining relative stagnation in agriculture. ISI gave a substantial boost to manufacturing but primarily at the expense of nontraded services, rather than of agriculture.
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Bibliographic InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1212.
Date of creation: 2012
Date of revision:
structural transformation; Computable general equilibrium (CGE); Industrialization; agricultural sector; Import substitution; Economic history;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-12-15 (Agricultural Economics)
- NEP-ALL-2012-12-15 (All new papers)
- NEP-CMP-2012-12-15 (Computational Economics)
- NEP-HIS-2012-12-15 (Business, Economic & Financial History)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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