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The «Argentine failure» from a comparative perspective: the role of total factor productivity

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  • González, Germán H.
  • Viego, Valentina N.

Abstract

The paper proposes an interpretation of the «Argentine failure» based on development accounting and econometrical approaches frequently used in the current cross-country income differentials literature. The main results are as follows: the development process of Canada — in term of per capita GDP –– moved away from that of Argentina around 1918, but there was a structural change in the determinants of aggregate productivity around 1935 that led Argentina to take a diverging path. Recovery — thanks to improved aggregate productivity –– was not possible after 1940. The results support the idea that Argentina fell into a «staple trap», while Canada embarked on a successful path due to the adjacency and political proximity with a larger and complementary economy.

Suggested Citation

  • González, Germán H. & Viego, Valentina N., 2011. "The «Argentine failure» from a comparative perspective: the role of total factor productivity," Revista de Historia Económica, Cambridge University Press, vol. 29(03), pages 301-326, December.
  • Handle: RePEc:cup:reveco:v:29:y:2011:i:03:p:301-326_00
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