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Argentina-Canada from 1870: Explaining the dynamics of divergence

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  • González, Germán
  • Viego, Valentina

Abstract

Argentina and Canada started their industrialization processes while exporting natural resources and importing capital goods. These two nations were sparsely populated but received significant inflows of European immigrants since the second half of the nineteenth century. Until the start of World War II, both economies experienced similar per-capita GDPs. However, the gap between both per-capita GDPs began to grow, widening throughout the century. We carry out an empirical study of the deep determinants of the divergence process between both economies. We confirm that while Canada was drawn into a successful path due to the adjacency with a bigger and complementary economy, Argentina fell into a “staple trap”.

Suggested Citation

  • González, Germán & Viego, Valentina, 2009. "Argentina-Canada from 1870: Explaining the dynamics of divergence," MPRA Paper 18394, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18394
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    References listed on IDEAS

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    1. Why is Argentina poorer than Canada?
      by Economic Logician in Economic Logic on 2009-12-11 09:36:00

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    More about this item

    Keywords

    Relative per-capita GDPs; development accounting; total factor productivity; Argentina; Canada;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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