Financial dependency: capital flight and external indebtedness in the periphery. Argentina's case

Leandro Bona

No unige:162752, Working Papers from University of Geneva, Paul Bairoch Institute of Economic History

Abstract: This study investigates, with preliminary insights, the process of Argentina's financial valorization in the 2015-2019 period, which led to a (new) sovereign debt restructuring between 2020/22 in Argentina. The paper draws a comparison with the previous indebtedness cycle (1976-2001), as well as with the Kirchner governments (2003-2015). Results indicate that approximately USD 321 billion were extracted from the national financial system from 1976-2015, while in the 1976-2001 period, foreign currencies originated from external indebtedness (both private and public). In 2002-2015, this role was played by trade surplus. Since 2016, the relationship between public external indebtedness and capital flight was reestablished, and there was a wealth externalization amounting to approximately USD 100 billion, in what was the accelerated implementation of the second financial valorization experience, which concluded with a rapid sovereign debt crisis. Its subsequent restructuring marks the limit of debt-led growth models for peripheral economies, such as the Argentine one, where the capital flight constitutes a major obstacle to recreate growth processes with income redistribution.

Keywords: Capital flight; External debt; Periphery; Argentina; Finantial valorization (search for similar items in EconPapers)
JEL-codes: N0 (search for similar items in EconPapers)
Pages: 22 p.
Date: 2022
New Economics Papers: this item is included in nep-his
References: Add references at CitEc
Citations:

Downloads: (external link)
https://luniarchidoc5.unige.ch/archive-ouverte/arc ... :162752/ATTACHMENT01

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gnv:wpaper:unige:162752

Access Statistics for this paper

More papers in Working Papers from University of Geneva, Paul Bairoch Institute of Economic History Contact information at EDIRC.
Bibliographic data for series maintained by Jean-Blaise Claivaz ().