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

  • Jeorge Àlvarez
  • Ennio Bilancini

    ()

  • Simone D’Alessandro
  • Gabriel Porcile

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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File URL: http://www.recent.unimore.it/wp/RECent-wp53.pdf
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Paper provided by University of Modena and Reggio E., Dept. of Economics "Marco Biagi" 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
Contact details of provider: Web page: http://www.recent.unimore.it/

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