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

Author

Listed:
  • 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.

Suggested Citation

  • Jeorge Àlvarez & Ennio Bilancini & Simone D’Alessandro & Gabriel Porcile, 2010. "Agricultural institutions, industrialization and growth: the case of New Zealand and Uruguay in 1870-1940," Center for Economic Research (RECent) 053, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    • Handle: RePEc:mod:recent:053
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    1. is not listed on IDEAS
    2. 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".
    3. Reto Bertoni & Henry Willebald, 2015. "Do energy natural endowments matter? New Zealand and Uruguay in a comparative approach (1870-1940)," Documentos de trabajo 35, Programa de Historia Económica, FCS, Udelar.
    4. Silvana Sandonato & Henry Willebald, 2018. "Natural Capital, Domestic Product and Proximate Causes of Economic Growth: Uruguay in the Long Run, 1870–2014," Sustainability, MDPI, vol. 10(3), pages 1-26, March.
    5. Bengtsson, Erik & Waldenström, Daniel, 2018. "Capital Shares and Income Inequality: Evidence from the Long Run," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 712-743, September.
    6. Jorge Álvarez, 2015. "Technological change and productivity growth in the agrarian systems of New Zealand and Uruguay (1870-2010)," Documentos de trabajo 43, Programa de Historia Económica, FCS, Udelar.
    7. 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.
    8. Rodríguez Weber, Javier, 2015. "Estimación de desigualdad de ingreso y otras variables relacionadas para Chile entre 1860 y 1970. Metodología y resultados obtenidos [Income inequality estimates for Chile between 1860 and 1970. Methodology and main results]," MPRA Paper 68400, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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