1. By: Elliot Charette University of Wisconsin - Superior

2.  Historical analysis ◦ Natural resources and political system  Empirical analysis ◦ Empirical decomposition ◦ Cobb-Douglas framework

3.  Argentina ◦ 1900-1930 Austria, Germany, France, and Sweden ◦ Better than Italy and Spain (measured by GNI) ◦ Very productive agricultural sector  Advanced country/economy during this time

4.  The Pampas! ◦ Fertile land ◦ Grain and pastures for cattle ◦ Allowed for high volume of agricultural exports  6% of property owners owned 70% of the Pampas

6.  End of the 1930s and early 1940s  Unequal distribution of land ◦ Land owners didn’t invest in industrial capital  Lack of industrial capital led to less competiveness in the global market  Imported European goods

7.  From the 1930s to 1976  Perón extends tariff protections, exchange controls, and import licenses ◦ ‘Protects’ domestic industry from global competition ◦ 1945 industry contributes more than agriculture as a share of GDP

8.  Adoption of more neoliberal reforms ◦ Aimed at creating more competition  More efficiency  1990s ◦ Extreme liberalization of economy  Cuts social programs and government employees

9. 1900-1930: Strong Agriculture, Wealthy Country 1931-1976: Protectionism, Declining Prosperity 1976 - 2010: Liberalization, ????

10.  How much does each factor contribute to growth? ◦ Not much research on recent growth ◦ How much does total factor productivity contribute to GDP?  Data 1991-2010 ◦ Source: Penn World Table and World Bank

11. (Zhu 2012)

12. Average Annual Growth Rates (%) Time PeriodGDP per capita Labor force participation rate Capital per worker Average human capital Total Factor Productivity 1991-2010 4.19 0.15 3.28 1.58 1.31 Contributions to per capita GDP growth (%) Time PeriodGDP per capita Labor force participation rate Capital per worker Average human capital Total Factor Productivity 1991-2010 1003.6519.6037.7039.06

13.  LFPR was a small factor contributing to GDP ◦ Possibly because of small, constant pop growth  Capital contributed to 19% of growth  Human capital was a large factor (37%!!!) ◦ High literacy rates ◦ “Right to education”  Total factor productivity largest factor at 39% ◦ Possibly liberalization?  More research needs to be done

15.  Brennan, J. (2007). Prolegomenon to Neoliberalism: The Political Economy of Populist Argentina. Latin American Perspectives, 34.3. 49-66.  Giovagnoli, P. (2005). Estimating the Returns to Education in Argentina 1992-2002. World Bank Policy Research Working Paper. 1-47.  Gonzalez, G., Viego, V. (2011). The Argentine Failure From a Comparative Perspective: The Role of Total Factor Productivity. Revista De Historia Economica, 29.3, 301-326.  Hall, R., Jones, C. (1999). Why Do Some Countries Produce So Much More Output Per Worker than Others? The Quarterly Journal of Economics, 114.1, 83-116.  Johns, M. (1992). Industrial Capital and Economic Development in Turn of the Century Argentina. Economic Geography 68.2, 188-204.  Rodriquez-Boetsch, L. (2005). Public Service Privatisation and Crisis in Argentina. Development in Practic, 15.3, 302-315.  Novick, M., Miguel L., Sarabia M. (2009). From Social Protection to Vulnerability: Argentina's Neo-liberal Reforms of the 1990s. International Labour Review 148.3, 235-252.  CIA World Factbook. Central Intelligence Agency, n.d. Retrieved from.  Zhu, X. (2012). Understanding China’s Growth: Past, Present, and Future. Journal of Economic Perspectives 26.4, 103-124.