By: Elliot Charette
University of Wisconsin - Superior
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Historical analysis
◦ Natural resources and political system
Empirical analysis
◦ Empirical decomposition
◦ Cobb-Douglas framework
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Argentina
◦ 1900-1930 Austria, Germany, France, and
Sweden
◦ Better than Italy and Spain (measured by GNI)
◦ Very productive agricultural sector
Advanced country/economy during this time
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The Pampas!
◦ Fertile land
◦ Grain and pastures for cattle
◦ Allowed for high volume of agricultural exports
6% of property owners owned 70% of the Pampas
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End of the 1930s and early 1940s
Unequal distribution of land
◦ Land owners didn’t invest in industrial
capital
Lack of industrial capital led to less
competiveness in the global market
Imported European goods
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From the 1930s to 1976
Perón extends tariff protections, exchange
controls, and import licenses
◦ ‘Protects’ domestic industry from global
competition
◦ 1945 industry contributes more than
agriculture as a share of GDP
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Adoption of more neoliberal reforms
◦ Aimed at creating more competition
 More efficiency
1990s
◦ Extreme liberalization of economy
 Cuts social programs and government
employees
1900-1930:
Strong
Agriculture,
Wealthy Country
1931-1976:
Protectionism,
Declining
Prosperity
1976 - 2010:
Liberalization,
????
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How much does each factor contribute to
growth?
◦ Not much research on recent growth
◦ How much does total factor productivity
contribute to GDP?
Data 1991-2010
◦ Source: Penn World Table and World Bank
(Zhu 2012)
Average Annual Growth Rates (%)
Time Period
GDP per capita
Labor force
Capital
Average
participation rate per worker human capital
1991-2010
4.19
0.15
3.28
1.58
Total Factor
Productivity
1.31
Contributions to per capita GDP growth (%)
Time Period
1991-2010
GDP per capita
100
Labor force
Capital
Average
Total Factor
participation rate
per worker
human capital
Productivity
3.65
19.60
37.70
39.06
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LFPR was a small factor contributing to GDP
◦ Possibly because of small, constant pop growth
Capital contributed to 19% of growth
Human capital was a large factor (37%!!!)
◦ High literacy rates
◦ “Right to education”
Total factor productivity largest factor at 39%
◦ Possibly liberalization?
More research needs to be done
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Brennan, J. (2007). Prolegomenon to Neoliberalism: The Political Economy of
Populist Argentina. Latin American Perspectives, 34.3. 49-66.
Giovagnoli, P. (2005). Estimating the Returns to Education in Argentina 1992-2002.
World Bank Policy Research Working Paper. 1-47.
Gonzalez, G., Viego, V. (2011). The Argentine Failure From a Comparative
Perspective: The Role of Total Factor Productivity. Revista De Historia Economica,
29.3, 301-326.
Hall, R., Jones, C. (1999). Why Do Some Countries Produce So Much More Output
Per Worker than Others? The Quarterly Journal of Economics, 114.1, 83-116.
Johns, M. (1992). Industrial Capital and Economic Development in Turn of the
Century Argentina. Economic Geography 68.2, 188-204.
Rodriquez-Boetsch, L. (2005). Public Service Privatisation and Crisis in Argentina.
Development in Practic, 15.3, 302-315.
Novick, M., Miguel L., Sarabia M. (2009). From Social Protection to Vulnerability:
Argentina's Neo-liberal Reforms of the 1990s. International Labour Review 148.3,
235-252.
CIA World Factbook. Central Intelligence Agency, n.d. Retrieved from
<https://www.cia.gov/library/publications/the-world-factbook/geos/ar.html>.
Zhu, X. (2012). Understanding China’s Growth: Past, Present, and Future. Journal of
Economic Perspectives 26.4, 103-124.