Structural Change in Argentina, 1935–1960: The Role of Import Substitution and Factor Endowments

Dario Debowicz () and Paul Segal

The Journal of Economic History, 2014, vol. 74, issue 1, 230-258

Abstract: This article investigates structural change in Argentina between 1935 and 1960, a period of rapid industrialization and of relative decline of the agricultural sector. We use a dynamic three-sector computable general equilibrium model of the period to analyze the effects of the policies of import-substituting industrialization (ISI), and changing factor endowments, on the structure of the economy. We find that the declining land-labor ratio was more important than ISI in explaining relative stagnation in agriculture. ISI gave a substantial boost to manufacturing, but primarily at the expense of non-traded services, rather than of agriculture.

Date: 2014
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