Working Paper: NBER ID: w19924
Authors: Alan M. Taylor
Abstract: The economic history of Argentina presents one of the most dramatic examples of divergence in the modern era. What happened and why? This paper reviews the wide range of competing explanations in the literature and argues that, setting aside deeper social and political determinants, the various economic mechanisms in play defy the idea of a monocausal explanation.
Keywords: No keywords provided
JEL Codes: F43; N16; O11; O54; O57; P52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Trade barriers and investment policies (O24) | Drop in income levels (E25) |
| Trade barriers and investment policies (O24) | Long-term decline in GDP (N15) |
| Capital scarcity (D24) | Lower output per worker (J89) |
| Macroeconomic risks (E66) | Higher equilibrium marginal product of capital (MPK) (E22) |
| Lower quality of capital and misallocation of investments (E22) | Exacerbate income gap (I24) |