Path-dependent import-substitution policies: the case of Argentina in the twentieth century
Abstract We use a simple three-sector model to narrate the economic history of Argentina during the twentieth century as seen through the prism of its integration into and dis-integration from the world economy. Assuming that capital moves between the primary and secondary sectors more slowly than l...
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| Format: | Article |
| Language: | English |
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Centro de Investigación y Docencia Económicas
2018-02-01
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| Series: | Latin American Economic Review |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1007/s40503-017-0047-4 |
| _version_ | 1828898468489330688 |
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| author | Sebastián Galiani Paulo Somaini |
| author_facet | Sebastián Galiani Paulo Somaini |
| author_sort | Sebastián Galiani |
| collection | DOAJ |
| description | Abstract We use a simple three-sector model to narrate the economic history of Argentina during the twentieth century as seen through the prism of its integration into and dis-integration from the world economy. Assuming that capital moves between the primary and secondary sectors more slowly than labor moves between the secondary and tertiary sectors, we show that import-substitution policies exhibit path dependence. We contend that the endogenous industrialization of the inter-war period generated political changes that paved the way for import-substitution industrialization during the post-war period. Even if this inward-oriented strategy failed to spur economic growth, protectionist policies became entrenched. In the absence of mature political institutions, the liberalization process was delayed and, when it finally did occur, it was extremely costly. |
| first_indexed | 2024-12-13T15:15:31Z |
| format | Article |
| id | doaj.art-832b00bcf5ff4e63a87735f52cad6f2b |
| institution | Directory Open Access Journal |
| issn | 2198-3526 2196-436X |
| language | English |
| last_indexed | 2024-12-13T15:15:31Z |
| publishDate | 2018-02-01 |
| publisher | Centro de Investigación y Docencia Económicas |
| record_format | Article |
| series | Latin American Economic Review |
| spelling | doaj.art-832b00bcf5ff4e63a87735f52cad6f2b2022-12-21T23:40:43ZengCentro de Investigación y Docencia EconómicasLatin American Economic Review2198-35262196-436X2018-02-0127115310.1007/s40503-017-0047-4Path-dependent import-substitution policies: the case of Argentina in the twentieth centurySebastián Galiani0Paulo Somaini1Department of Economics, University of MarylandStanford Graduate School of BusinessAbstract We use a simple three-sector model to narrate the economic history of Argentina during the twentieth century as seen through the prism of its integration into and dis-integration from the world economy. Assuming that capital moves between the primary and secondary sectors more slowly than labor moves between the secondary and tertiary sectors, we show that import-substitution policies exhibit path dependence. We contend that the endogenous industrialization of the inter-war period generated political changes that paved the way for import-substitution industrialization during the post-war period. Even if this inward-oriented strategy failed to spur economic growth, protectionist policies became entrenched. In the absence of mature political institutions, the liberalization process was delayed and, when it finally did occur, it was extremely costly.http://link.springer.com/article/10.1007/s40503-017-0047-4Trade policyImport substitutionTrade liberalizationProtectionism |
| spellingShingle | Sebastián Galiani Paulo Somaini Path-dependent import-substitution policies: the case of Argentina in the twentieth century Latin American Economic Review Trade policy Import substitution Trade liberalization Protectionism |
| title | Path-dependent import-substitution policies: the case of Argentina in the twentieth century |
| title_full | Path-dependent import-substitution policies: the case of Argentina in the twentieth century |
| title_fullStr | Path-dependent import-substitution policies: the case of Argentina in the twentieth century |
| title_full_unstemmed | Path-dependent import-substitution policies: the case of Argentina in the twentieth century |
| title_short | Path-dependent import-substitution policies: the case of Argentina in the twentieth century |
| title_sort | path dependent import substitution policies the case of argentina in the twentieth century |
| topic | Trade policy Import substitution Trade liberalization Protectionism |
| url | http://link.springer.com/article/10.1007/s40503-017-0047-4 |
| work_keys_str_mv | AT sebastiangaliani pathdependentimportsubstitutionpoliciesthecaseofargentinainthetwentiethcentury AT paulosomaini pathdependentimportsubstitutionpoliciesthecaseofargentinainthetwentiethcentury |