Trade, Structural Transformation, and Development: Evidence from Argentina 1869–1914
Trade, Structural Transformation, and Development: Evidence from Argentina 1869–1914
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DOI:
10.1086/718915
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发表时间:
2014-06
影响因子:
8.2
通讯作者:
Pablo D. Fajgelbaum;S. Redding
中科院分区:
文献类型:
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作者:
Pablo D. Fajgelbaum;S. Redding
We provide new theory and evidence on the role of external and internal integration in structural transformation and economic development, using Argentina’s integration into the world economy in the late nineteenth century. Our theoretical model provides microfoundations for a spatial Balassa-Samuelson effect, in which locations closer to world markets have higher population densities, urban population shares, relative prices of nontraded goods, and land prices relative to wages, as well as specializing in traded goods that are transport-cost sensitive. We estimate the model’s parameters, provide evidence in support of this spatial Balassa-Samuelson mechanism, and find substantial effects of both external and internal integration on economic development.