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Institutional Gaps: The Argentine Restriction on Agricultural Production

Author

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  • Alvarado Ledesma, M.
  • Goldsmith, Peter D.

Abstract

This article aims to explain the implications of weak institutions on agribusiness investment in Argentina. Weak institutions lead to policy development and enforcement grounded in the moment, rather than based on precedent and deliberative processes over time. Political exigencies and election cycles challenge policymakers to yield to legal precedent, rule of law, international standards in an environment of weak institutions. We suggest, and welcome critique, that the weak institutional environment in Argentina allows for capricious tax, trade, pricing, and in-vestment policies by government to the point of creating undo business uncertainty. This uncertainty results in an inferior agribusiness investment environment, which in turn reduces the potential economic impact a robust agribusiness complex could provide to the nation.

Suggested Citation

  • Alvarado Ledesma, M. & Goldsmith, Peter D., 2012. "Institutional Gaps: The Argentine Restriction on Agricultural Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(1), pages 1-4, February.
    • Handle: RePEc:ags:ifaamr:120864
    DOI: 10.22004/ag.econ.120864
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