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

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  • Jeorge Àlvarez
  • Ennio Bilancini

    ()

  • Simone D’Alessandro
  • Gabriel Porcile

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 infuenced 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

Paper provided by University of Modena and Reggio E., Dept. of Economics in its series Center for Economic Research (RECent) with number 053.

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Length: pages 33
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:mod:recent:053

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Web page: http://www.recent.unimore.it/
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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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  1. E. Bilancini & Simone D’Alessandro, 2006. "Functional Distribution, Land Ownership and Industrial Takeoff: The Role of Effective Demand," DEGIT Conference Papers c011_051, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Marina Murat & Barbara Pistoresi, 2006. "Emigrants and immigrants networks in FDI," Department of Economics 0546, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  3. Luis Bertola, 2005. "A 50 años de la Curva de Kuznets: Crecimiento Económico y Distribución del Ingreso en Uruguay y otros Países de Nuevo Asentamiento desde 1870," Working Papers in Economic History dilf0504, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  4. Galor, Oded & Moav, Omer & Vollrath, Dietrich, 2008. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence," CEPR Discussion Papers 6751, C.E.P.R. Discussion Papers.
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  7. Bertocchi, Graziella, 2003. "The Law of Primogeniture and the Transition from Landed Aristocracy to Industrial Democracy," CEPR Discussion Papers 3723, C.E.P.R. Discussion Papers.
  8. Graziella Bertocchi & Arcangelo Dimico, 2010. "Slavery, Education, and Inequality," Department of Economics 0634, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  9. Kevin M. Murphy & Andrei Shleifer & Robert Vishny, 1988. "Income Distribution, Market Size, and Industrialization," NBER Working Papers 2709, National Bureau of Economic Research, Inc.
  10. Giuseppe Marotta, 1997. "Does trade credit redistribution thwart monetary policy? Evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1619-1629.
  11. Lattimore, Ralph G. & Hawke, Gary, 1999. "Visionaries, Farmers And Markets: An Economic History Of New Zealand Agriculture," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123830, Australian Agricultural and Resource Economics Society.
  12. Margo, Robert A., 1999. "Regional Wage Gaps and the Settlement of the Midwest," Explorations in Economic History, Elsevier, vol. 36(2), pages 128-143, April.
  13. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
  14. Blattman, Christopher & Hwang, Jason & Williamson, Jeffrey G., 2007. "Winners and losers in the commodity lottery: The impact of terms of trade growth and volatility in the Periphery 1870-1939," Journal of Development Economics, Elsevier, vol. 82(1), pages 156-179, January.
  15. Ville,Simon, 2010. "The Rural Entrepreneurs," Cambridge Books, Cambridge University Press, number 9780521125949, December.
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Cited by:
  1. 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".
  2. 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.

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