Staple products, linkages, and development: evidence from Argentina
Files
Accepted manuscript
Date
2021-09
Authors
Droller, Federico
Fiszbein, Martin
Version
Accepted manuscript
OA Version
Citation
F. Droller, M. Fiszbein. 2021. "Staple Products, Linkages, and Development: Evidence from Argentina." The Journal of Economic History, Volume 81, Issue 3, pp. 723 - 762. https://doi.org/10.1017/s0022050721000383
Abstract
We investigate how historical patterns of primary production influenced development across local economies in Argentina. Our identification strategy exploits exogenous variation in the composition of primary production induced by climatic features. We find that locations specializing in ranching had weaker linkages with other activities, higher concentration in land ownership, lower population density, and less immigration than cereal-producing areas. Over time, ranching localities continued to exhibit lower population density, and they experienced relatively sluggish industrialization. Ultimately, ranching specialization had large negative effects on long-run levels of income per capita and human capital.