Exceptional Argentina Di Tella, Glaeser and Llach - Thomas Piketty

Figure 6. Per capita GDP across Argentine regions
25.000
20.000
Australia
15.000
Buenos Aires
10.000
5.000
Other
Pampas
Argentina
Mexico
Non-Pampas
0
1889
1894
1899
1904
1909
1914
1919
1924
1929
1934
1939
1944
1949
1954
1959
1964
1969
1974
1979
1984
1989
1994
1999
Overall, it does seem that Argentina's #11 rank in the late 1920s is too simplistic a measure to
describe the real wealth of the nation. True, Argentine workers did share in Argentina's
prosperity, as real wages reflected the country's relatively high income per capita. On other
dimensions, however, the picture is not as rosy. Though on the rise, Argentina's health and
educational status were lower than what would be expected from its GDP numbers. Also,
Argentina suffered some striking regional imbalances. One fourth of its population was living
in regions that produced just over 10% of GDP, and whose per capita income was similar to
that of Mexico, ie., less than half that of Buenos Aires.
3. From Extensive to Intensive Growth, 1870-1930
Out of the 57 countries for which Maddison has per capita GDP data for both 1870 and 1913,
Argentina ranks #3 in economic growth between those dates (after Canada and Mexico). GDP
per capita grew 2,12% annually. If we stretch the period to the 1920s, Argentina (2,07%) is
second only to Venezuela. In terms of total GDP, Argentina is first both for 1870-1913
(5,6%) and 1870-1928 (5,35%). For 1870-1913 the second is New Zealand (4,31%) and for
the larger period, Uruguay (3,78%). Given that most of the increase in population was due to
the attraction of immigration from the Old World, the Argentine economy can well be
described as the most dynamic in the world in the sixty years to 1930.
Before entering into the mechanics of growth in terms of factor accumulation and
technological progress, it is worth asking what could have sparked such an impressive pace of
economic progress. Clearly, growth can be described in some sense as "export-led".
Argentina turned out to be a very open economy indeed: according to the Maddison data, for
example, the country ranked third out of 30 in the ratio of export value (in current dollars) to
GDP (PPP) in 1913, trailing only the better located Austria and Belgium; by 1929 Argentina
was still virtually sharing that third place with Canada and Belgium (following the smaller