Growth In Argentina Research Articles

Does Public Investment Enhance Labor Productivity Growth in Argentina? A Cointegration Analysis

This paper addresses the important question of whether public investment spending on economic infrastructure enhances economic growth and labor productivity in Argentina. Following the lead of the endogenous growth literature, it presents a simple modified production function that explicitly includes the positive or negative externality effects generated by public investment. Using cointegration analysis, the paper estimates a dynamic labor productivity function for the 1960-2005 period that incorporates the impact of public and private investment spending and the labor force (rather than the rate of population growth). The results suggest that (lagged) increases in public investment spending on economic infrastructure - as opposed to overall public investment spending - have a positive and significant effect on the rate of labor productivity growth. In addition, the model is estimated for a shorter period (1970-2005) to capture the impact of foreign direct investment. The estimates suggest that foreign direct investment spending has a lagged positive and significant impact on labor productivity growth, while increases in the labor force have a negative effect. Thus, the findings call into question the politically expedient policy in many Latin American countries, including Argentina during the 1990s, of disproportionately reducing public capital expenditures to meet reductions in the fiscal deficit as a proportion of GDP

Economic Stability and Sustainable Development in Argentina

Economic Stability and Sustainable Development in Argentina Raúl García-Heras (bio) The Elusive Quest for Growth in Argentina. By Daniel Chudnovsky and Andrés López. New York: Palgrave Macmillan, 2007. Pp. 217. $69.95 cloth. Economía política de la Argentina en el siglo XX. By Roberto Cortés Conde. Buenos Aires: Edhasa, 2005. Pp. 353. $16.24 paper. ¿Porqué la Argentina no fue Australia? Una hipótesis sobre un cambio de rumbo. By Pablo Gerchunoff and Pablo Fajgelbaum. Buenos Aires: Siglo XXI Editores, 2006. Pp. 117. $6 paper. Entre la equidad y el crecimiento: Ascenso y caída de la economía argentina. By Lucas Llach and Pablo Gerchunoff. Buenos Aires: Siglo XXI Editores, 2004. Pp. 128. $6 paper. Empresarios, instituciones y desarrollo económico: El caso argentino. By Andrés López. Buenos Aires: Comisión Económica para América Latina y el Caribe, 2006. Pp. 301. Argentina: What Went Wrong. By Colin M. MacLachlan. Westport, CT: Praeger, 2006. Pp. 221. $49.95 cloth. The Institutional Foundations of Public Policy in Argentina. By Pablo Spiller and Mariano Tommasi. New York: Cambridge University Press, 2007. Pp. 237. $91.00 cloth. Introduction The downturn of the Argentine economy in the late 1990s, which culminated in the collapse of the constitutional government and of monetary convertibility in December 2001, triggered an intense debate in local and international media, as well as in multilateral financial institutions and academic, professional, and financial circles.1 The main topics of discussion [End Page 278] were the strengths and weaknesses of the recently deceased regime, the causes of what was publicly recognized as the deepest crisis in Argentine history, and who was responsible for the worst worldwide default in international payments.2 However, other major issues more relevant for this review essay were also considered: (1) the prospect that the economic recovery experienced by Argentina since the second quarter of 2002 might end in another crisis; (2) whether Argentine economic development should have avoided past mistakes and followed the Australian model; (3) the impact of the quality of political institutions on public policies and hence on economic development; and (4) the nature and caliber of national entrepreneurship vis-à-vis Argentina's past experience and current need to turn a new page. To what extent have recent scholarly monographs about Argentina's economic development addressed these concerns? Who has participated in these discussions? Which theoretical and methodological approaches have been used and why? What are the strengths and weaknesses of these works? Have they left unanswered any issues of the public policy agenda mentioned previously? If this has happened, how can these omissions be explained? In light of these questions, this review will use an issue-oriented approach to discuss some of the results of renewed scholarly interest in Argentine economic stabilization and development. The Pattern of Long-Term Oscillations of the Economy Many scholars and analysts have long followed two standard tracks to examine Argentina's thwarted efforts to become a developed nation. First, they have argued that Argentina is the most cultured and advanced Latin American country, which used to have a thriving middle class and a highly educated population. Second, they have stated that, partly because of its rich resources and human capital, Argentina had one of the highest rates of gross domestic product per capita in the world by 1930, and its economic performance compared quite well with that of other recent settlement nations such as the United States, Australia, and Canada.3 [End Page 279] In Argentina: What Went Wrong, MacLachlan takes up and interrelates these arguments to examine the Argentine paradox in world economic development. The timing and contents of this book, published in 2006, suggest that it was triggered by the Argentine economic collapse of December 2001. MacLachlan's starting arguments are very straightforward: Argentina's decline during the past fifty years and its collapse in 2001 call for thorough analysis to avoid the same outcome in the United States. Second, Argentina's problems are deeply grounded in its history and their solution lies in the hands and determination of its politicians and citizens (xiii–xiv). To this end, MacLachlan traces the history of Argentina...

The elusive quest for growth in Argentina

The elusive quest for growth in Argentina

Two to Tangle: Financial Development, Political Instability and Economic Growth in Argentina (1896-2000)

This paper investigates the effects of financial development and political instability on economic growth in a power-ARCH framework with data for Argentina from 1896 to 2000. Our findings suggest that (i) informal or unanticipated political instability (e.g., guerrilla warfare) has a direct negative impact on growth; (ii) formal or anticipated instability (e.g., cabinet changes) has an indirect (through volatility) impact on growth; (iii) the effect of financial development is positive and, surprisingly, not via volatility; (iv) the informal instability effects are much larger in the short- than in the long-run; and (v) the impact of financial development on economic growth is negative in the short- but positive in the long-run.

Trade openness and economic growth: is growth export-led or import-led?

Most previous investigations have only focused on the effect of export expansion on economic growth while ignoring the potential growth-enhancing contribution of imports. This article re-examines the relationship between trade and economic growth in Argentina, Colombia, and Peru with emphasis on both the role of exports and imports. Granger causality tests and impulse response functions were used to examine whether growth in trade stimulate economic growth (or vice versa). The results suggest that the singular focus of past studies on exports as the engine of growth may be misleading. Although there is some empirical evidence supporting export-led growth, the empirical support for import-led growth hypothesis is relatively stronger. In some cases, there is also evidence for reverse causality from gross domestic product growth to exports and imports.

Individual, organizational and environmental determinants of new firm employment growth: evidence from Latin America

New ventures are increasingly playing an important role in Latin American economies. However, little is known about the determinants of new firm growth in this context. The purpose of this study is to gain an understanding of the factors influencing new firm growth in Argentina, Brazil, Mexico and Peru. Individual, organizational and environmental factors are included in an empirical model, which is tested using data collected by face-to-face interviews with 582 entrepreneurs. Different specifications of employment growth and regression approaches are employed. Results suggest that growth strongly depends on the characteristics of the entrepreneur. National environment and firm-related factors are also important factors in determining growth.

Soil available phosphorus status determines indigenous mycorrhizal colonization of field and glasshouse-grown spring wheat from Argentina

Wheat production ( Triticum aestivum L.) has increased across the world during last century with the intensification of agriculture. Phosphorus (P) fertilization is a common practice to improve wheat growth in Argentina. We investigate whether indigenous arbuscular mycorrhizal colonization (AMC) of hard red spring wheat is controlled by shoot P content (SPc) or by available soil P in an agricultural soil from the southeastern Argentine Pampas. In the field, AMC was monitored four times during two growing seasons of a conventional wheat crop. Treatments were: without P supply, annual supply of 11 and 22 kg P ha −1 during the last 5 years, and 164 kg P ha −1 applied once 5 years before the experiment. In the glasshouse, AMC was assessed three times in wheat growing in pots filled with the soil from unfertilized plots; treatments were: P (0 and 20 mg P pot −1), and nitrogen (N) fertilization (0 and 150 mg N pot −1). A range of soil P between 6 and 60 mg P kg −1 was obtained and the AMC ranged from 1% to 67% of root length colonized under both field and glasshouse conditions. P supplied annually increased growth and SPc but decreased AMC. N fertilization did not affect growth or AMC. Variations in SPc did not account for AMC. Variability in AMC was best accounted for local current soil available P content ( r 2 = 0.59). A linear-plateau relationship between soil P and indigenous AMC was established in wheat plants growing under contrasting environmental and experimental (field and glasshouse) conditions. Indigenous AMC was depressed by available soil P in the range 0–27 mg P kg −1 (a decrease of 2.8% mg P −1 kg −1). Above 27 mg P kg soil −1, AMC was stabilized at about 10%. Grain yield increased with fertilization and the highest relative shoot dry matter in field was obtained at 15.5 mg P kg soil −1. The soil P range that ensures high wheat production without deterring indigenous AMC is discussed.

Human Capital, Trade Openness and Growth in Argentina in the 20th Century

We estimate a production function that accounts for the economic performance of the country in the 20th century. We elaborate long term time series whereas most of the recent empirical studies on growth are based on cross section analysis. This approach allows us to follow the various regime changes that can be identified in the rich economic history of Argentina. To evaluate Total Factor Productivity (TFP) we initially test the classical Solow Model. We estimate the speed of convergence of TFP and obtain a non convergence result. This speed of convergence has declined since the 1930s, and we find a phenomenon of divergence in the period 1970–90. We then analyse the impact on production of additional variables recently highlighted in the endogenous growth literature such as the process of catch up of foreign technical progress, human capital and trade openness. Chow tests for this extended production function give us a strong probability of changes in the growth regimes. The estimation, that takes into consideration the break points identified, shows that the impact of trade openness and foreign technology is not stable throughout the century. In what concerns the impact of education on economic growth, we find a strong effect of primary education on growth, and a weaker effect of secondary‐university education.

Divergent Development: The Pursuit of Liberty, Equality, and Growth in Argentina and the Republic of Korea*

In addressing these issues I propose to account for the divergence between the NICs of these two regions through a comparative analysis of a member state from each region, Argentina and the Republic of Korea. By accounting for, that is explaining and predicting, the divergent development of these two nations, we will have a basis for asserting which theoretical approach (nco-dcpcndcncy or nco-lib cralism) is more valid. And once their divergent development is explained, we will be able to identify the conditions responsible for the success of the East Asian model and to say whether these same conditions may be found elsewhere allowing for the successful export of that model.

Natural occurrence of fumonisins and their correlation to Fusarium contamination in commercial corn hybrids growth in Argentina

Fifty commercial corn hybrids with different endosperm characteristics, vegetative cycle length and cross class grown in the same geographical area (Cordoba Province, Argentina) were analysed for fumonisin accumulation. All hybrids analysed showed fumonisin B(1) and B(2) contamination ranging from 185 to 27,050 ng/g for FB(1) and from 40 to 9950 ng/g for FB(2). Although most of the hybrids analysed had flint-type endosperm, two hybrids with dent-type endosperm (e.g. Prozea 10 and AX 746) showed the highest level of fumonisin (37,000 ng/g) and more FB(2) than FB(1) (FB(2)/FB(1) ratio 2.42), respectively. There was no correlation between fumonisin concentration and length of the vegetative cycle. Among 18 hybrids examined for Fusarium species contamination there was also no correlation between fumonisin contamination and the level of infection with Fusarium species (Section Liseola). Eighteen hybrids showed fumonisin levels lower than 1000 ng/g. This result suggests that there is some possibility of selecting hybrids resistant or less susceptible to fumonisin and Fusarium contamination.

Differences in early postnatal morbidity risk by pattern of fetal growth in Argentina

Summary Information on a cohort of 5539 singleton births delivered at term in two hospitals in Rosario, Argentina, was used to examine differences in early postnatal morbidity between small for gestational age (SGA) infants classified by their ponderal index (PI). SGA infants with low PI (SGA‐LPI) were 4.35 (90% CI: 1.50, 12.61) times more likely to have asphyxia, 13.75 (2.48, 76.31) times more likely to have hypoglycae‐mia and 2.32 (1.03, 5.26) times more likely to have respiratory distress (RD) than SGA infants with adequate PI (SGA‐API). The increased risks of asphyxia and hypoglycaemia observed for SGA‐LPI infants diminished, but remained statistically significant after controlling for the infant's gender, birthweight, gestational age and hospital of birth. There was no difference in risk of hyperbilirubinaemia between SGA‐API and SGA‐LPI infants. With the exception of risk of hyperbilirubinaemia, SGA‐API infants carried the same risks of morbidity as non‐SGA infants. The results of the study show that SGA infants do not constitute a homogeneous group with respect to their prospects for early postnatal health and survival. Furthermore, the pattern of differences in morbidity risk between SGA‐API and SGA‐LPI infants observed in this study is consistent with the timing hypothesis for the aetiology of variation in PI among SGA infants.

Differences in early postnatal morbidity risk by pattern of fetal growth in Argentina

Information on a cohort of 5539 singleton births delivered at term in two hospitals in Rosario, Argentina, was used to examine differences in early postnatal morbidity between small for gestational age (SGA) infants classified by their ponderal index (PI). SGA infants with low PI (SGA-LPI) were 4.35 (90% CI: 1.50, 12.61) times more likely to have asphyxia, 13.75 (2.48, 76.31) times more likely to have hypoglycaemia and 2.32 (1.03, 5.26) times more likely to have respiratory distress (RD) than SGA infants with adequate PI (SGA-API). The increased risks of asphyxia and hypoglycaemia observed for SGA-LPI infants diminished, but remained statistically significant after controlling for the infant's gender, birthweight, gestational age and hospital of birth. There was no difference in risk of hyperbilirubinaemia between SGA-API and SGA-LPI infants. With the exception of risk of hyperbilirubinaemia, SGA-API infants carried the same risks of morbidity as non-SGA infants. The results of the study show that SGA infants do not constitute a homogeneous group with respect to their prospects for early postnatal health and survival. Furthermore, the pattern of differences in morbidity risk between SGA-API and SGA-LPI infants observed in this study is consistent with the timing hypothesis for the aetiology of variation in PI among SGA infants.

Agriculture and growth in Argentina

Argentina showed impressive economic growth from 1860 to 1930. During this period Argentina outgrew countries with similar resource endowments such as Australia, Brazil, Canada and the USA. The country's early development strategy was predominantly outward oriented. Since the 1930s Argentina had lagged behind its competitors. Stagnation has been especially severe in agriculture. This article argues that government policies (trade, macroeconomic and income policies) which resulted in distorted economic incentives and caused inefficient resource allocation have been the main reasons for Argentina's poor economic performance in recent decades.

Agricultural Credit in the Province of Buenos Aires, Argentina, 1890–1914

In 1879, for the first time, Argentina exported more wheat than it imported. A generation later the Republic figured among the top five exporters of wheat in the world and wheat had become its premier earner of foreign exchange. The expansion was by any account remarkable.1With the expulsion of the Indians from thePampa Húmedain the late 1870s, hundreds of thousands of hectares of arable and highly fertile land were suddenly made available to agriculturalists. Railways, built largely with British capital, provided the means to ship new agricultural produce out of the region to the newly constructed ports. Immigrants flocked from Europe to take advantage of the opportunities offered by the vacant land, either as new property owners, as tenants or as wage-earners. The surge in the supply of land, labour and capital initiated a period of growth in Argentina, a growth which was shared by other regions of recent settlement which responded to similar opportunities.2

The Fitful Republic: Economy, Society, and Politics in Argentina.

This book explains the varied political roles played by agrarian and industrial groups in the modernization of Argentina. It seeks to account for the attainment of a high level of social complexity that has not, however, been matched by steady economic growth or political stability. What have been the determinants of economic growth in Argentina? In what sense does its capitalist development differ from that of other advanced societies? Under what conditions has that development taken place? The answers to these questions, states Professor Corradi, are woven into a picture of a society that follows a path flanked by authoritarianism and political disorder.