Determinants of state capacity in the Argentinian provinces

Why do Argentine provinces differ in their state capacity? A recent family of models predicts a positive relationship between democracy and extractive capacity, and a negative relationship between income inequality and extractive capacity (Besley y Persson 2009; 2011; Cárdenas 2010). These hypothese...

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Main Author: Pablo Ezequiel Balán
Format: Article
Language:English
Published: Pontificia Universidad Católica Argentina, Facultad de Ciencias Sociales, Departamento de Ciencias Políticas y Relaciones Internacionales 2023-04-01
Series:Revista Colección
Subjects:
Online Access:https://erevistas.uca.edu.ar/index.php/COLEC/article/view/867
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author Pablo Ezequiel Balán
author_facet Pablo Ezequiel Balán
author_sort Pablo Ezequiel Balán
collection DOAJ
description Why do Argentine provinces differ in their state capacity? A recent family of models predicts a positive relationship between democracy and extractive capacity, and a negative relationship between income inequality and extractive capacity (Besley y Persson 2009; 2011; Cárdenas 2010). These hypotheses are tested at the subnational level of a federal country: the Argentine provinces in the period 1991-2001. Results show that (i) the level of subnational democracy has a negative effect on the extractive capacity of local governments, (ii) income inequality has a negative effect on extractive capacity, and (iii) the effect of federal transfers on extractive capacity is not statistically significant. From a theoretical point of view, the most important result is the negative association between the level of subnational democracy and the level of extractive capacity: this raises some doubts on most of the recent literature on the subject and opens the possibility of an “olsonian logic” (Olson 1993): governors with less restrictions could have an “encompassing interest” in their subnational polities.
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spelling doaj.art-315496c7cf50462fb0177cfee396b5612023-04-11T23:26:25ZengPontificia Universidad Católica Argentina, Facultad de Ciencias Sociales, Departamento de Ciencias Políticas y Relaciones InternacionalesRevista Colección0328-79981850-003X2023-04-010231354816Determinants of state capacity in the Argentinian provincesPablo Ezequiel Balán0Universidad de San AndrésWhy do Argentine provinces differ in their state capacity? A recent family of models predicts a positive relationship between democracy and extractive capacity, and a negative relationship between income inequality and extractive capacity (Besley y Persson 2009; 2011; Cárdenas 2010). These hypotheses are tested at the subnational level of a federal country: the Argentine provinces in the period 1991-2001. Results show that (i) the level of subnational democracy has a negative effect on the extractive capacity of local governments, (ii) income inequality has a negative effect on extractive capacity, and (iii) the effect of federal transfers on extractive capacity is not statistically significant. From a theoretical point of view, the most important result is the negative association between the level of subnational democracy and the level of extractive capacity: this raises some doubts on most of the recent literature on the subject and opens the possibility of an “olsonian logic” (Olson 1993): governors with less restrictions could have an “encompassing interest” in their subnational polities.https://erevistas.uca.edu.ar/index.php/COLEC/article/view/867federalismopolítica subnacionalcapacidad estatal
spellingShingle Pablo Ezequiel Balán
Determinants of state capacity in the Argentinian provinces
Revista Colección
federalismo
política subnacional
capacidad estatal
title Determinants of state capacity in the Argentinian provinces
title_full Determinants of state capacity in the Argentinian provinces
title_fullStr Determinants of state capacity in the Argentinian provinces
title_full_unstemmed Determinants of state capacity in the Argentinian provinces
title_short Determinants of state capacity in the Argentinian provinces
title_sort determinants of state capacity in the argentinian provinces
topic federalismo
política subnacional
capacidad estatal
url https://erevistas.uca.edu.ar/index.php/COLEC/article/view/867
work_keys_str_mv AT pabloezequielbalan determinantsofstatecapacityintheargentinianprovinces