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The configuration of a “modern” production structure requires there to be sufficient en-ergy supply at competitive costs. Since the last third of the nineteenth century, coal produc-tion and better natural conditions for generating electric energy at low cost explain – at least partially – the differences in favour of New Zealand with respect to Uruguay. However, in-stitutional arrangements are another relevant factor of differentiation. Our argument is based on the concept of endogeneity of natural resources, and we use it to prove the differ-ent roles of states in electricity systems: state intervention aimed at improving welfare con-ditions in Uruguay without paying enough attention to aspects related to production condi-tions; while, in New Zealand, productive development was the focus of public action. As a result, a more extensive and denser electrical network was consolidated in New Zealand which, potentially, would have created better conditions in terms of diversification and ru-ral production.

In this article, we discuss whether there was a single Latin American pattern of agricultural growth between 1950 and 2008. We analyse the sources of growth of agricultural production and productivity in ten Latin American countries. Our results show that the differences between these countries are too large to establish a single pattern for this region. However, certain common trends may be observed, such as the growing importance of labour productivity as a component of agricultural production growth and the increasing relevance of total factor productivity as a component of agricultural labour productivity growth.

The increasing interest in economic diversification, technological sophistication, and production specialization again places structural change at the centre of the economic development theory. How...

We present estimates of regional products in Uruguay during the First Globalization (from the 1870s to the years previous to the World War I). Our results show a decreasing and irregular trend in the regional inequality which is consistent with a process of income convergence between provinces. The irregularity of the trajectory would be evidence of the performance of centrifugal and centripetal forces that alternated influences during the period. The forces that trended to decentralize production were the combination of abundant natural resources suitable for livestock production throughout the territory with the reduction of transport costs that made possible to access more easily to Montevideo and, through its port, to the global market. Centripetal forces would have responded to a process characterized by the increasing importance of Montevideo as urban and administrative center, a huge market of goods and services and a dynamic centre of labour market. In addition, Montevideo evidenced the increasing importance of commercial and financial activities (and its potential for making industrial development more flexible), which was only interrupted by the economic and financial crisis of 1890-1891. In facts, the crisis constituted one of the main equalizing forces of the period. The result was to start the twentieth century with levels of regional inequality lower than those recorded in the 1870s-1880s.

We propose different alternatives of inequality estimation for economies with a big agricultural sector where land is a decisive factor in income generation and where we do not have enough information about personal earnings. To this end, we use the Uruguayan case to test our methodology. We propose six analytical exercises where Gini indexes are calculated, and as reference we choose the estimation that better adjusts to some theoretical and empirical conditions. Finally, we check the historical accuracy of the series by looking at income distribution explicative variables and the shape of the Inequality possibility frontier. Our results are consistent with the economic and social events of the period (1870–1912) and with previous estimates which reveal worsening trends in income distribution. However, our annual data allow capturing the dynamics of the process where breaks in the series are observed and improvements and declines alternate in the evolution of income distribution.

This article is the first of its kind to offer a quantitative estimation of the evolution of Latin American agricultural production and productivity between 1950 and 2008. It also uncovers the extent to which the increases in production were due to increases in factors of production or to efficiency gains. Our findings reveal that efficiency gains made a rather modest contribution to the substantial increase in production, although their role became increasingly large over time and were highly significant between 1994 and 2008. Capital was the most important productive factor in explaining increases in output.

En este artículo se analiza por primera vez el crecimiento y la evolución de la desigualdad regional a lo largo del proceso de desarrollo económico de nueve países de Latinoamérica (Argentina, Bolivia, Brasil, Chile, Colombia, México, Perú, Uruguay y Venezuela) entre 1895 y 2010. Para ello, en primer lugar se verifica la presencia de un proceso de beta-convergencia entre los países latinoamericanos para la totalidad del periodo. No obstante, se muestra cómo este proceso fue especialmente intenso durante los periodos en los que los diferentes Estados implementaron políticas activas de desarrollo (ISI) que favorecieron la convergencia entre las regiones de un mismo país. En segundo lugar, se estudia la sigma-convergencia tomando como unidad de análisis el conjunto de regiones que componen estos nueve países. Se muestra cómo la desigualdad económica regional ha seguido una evolución en forma de N a lo largo del periodo analizado. En particular, Latinoamérica registró un incremento en la desigualdad regional desde finales del siglo xix hasta el periodo de entreguerras. Sin embargo, desde el final de la Segunda Guerra Mundial hasta la crisis de la década de 1970 se registró un notable proceso de convergencia regional. Finalmente, los cambios en el consenso político y económico internacional en la década de 1980 marcaron el inicio de una nueva etapa de crecimiento de la desigualdad regional latinoamericana. This article analyzes, for the first time, the evolution of regional growth and inequality over the course of the historical economic development process of nine countries of Latin America (Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela) between 1895 and 2010. In doing that, we first verify the presence of a beta-convergence process among Latin American countries along the whole period. Nevertheless, it is also shown that convergence across countries was especially intense during the periods when different States implemented inward looking policies that favored regional convergence within countries. Second, we study regional sigma-convergence taking together the regions of these nine countries as unit of analysis. The study shows that regional income inequality has followed over time what appears to be an N-shaped evolution. Particularly, Latin America experienced an increase in regional inequality from the end of the XIXth century up to the interwar years. Nevertheless, Latin America underwent a period of regional convergence between the aftermath of the Second World War and the crisis of the 1970s. Finally, the crisis of the 1970s and the changes in the international political and economic consensus in the 1980s marked the beginning of a new stage in the evolution of inequality. Marc Badia-Miró, Julio Martínez-Galarraga y Daniel A. Tirado-Fabregat reconocen el apoyo financiero del Ministerio de Ciencia, Innovación y Universidades (MCIU), la Agencia Estatal de Investigación (AEI) y el Fondo Europeo de Desarrollo Regional (FEDER) a través de los proyectos PGC2018-095821-B-I00 y de la red de investigación de excelencia GLOCREd (ECO2017- 90848-REDT). Marc Badia-Miró también agradece el apoyo financiero del Gobierno de Cataluña (2017SGR14669). Henry Willebald el de CSIC-UDELAR I+D (Comisión Sectorial de Investigación Científica-Universidad de la República) y el del Programa de Intercambio Académico y de Movilidad, así como del Fondo Sectorial de Equidad Territorial de la Agencia Nacional de Investigación e Innovación. Finalmente, Daniel A. Tirado-Fabregat agradece la financiación obtenida para la realización de este trabajo a través del proyecto Europa Investigación, EUIN2017- 86001.

This book represents a contribution in, at least, three dimensions: quantitative, historical and conceptual. From a quantitative point of view, the volume presents an extensive data set corresponding to 9 countries, 182 regions (states, provinces, departments) and around 14 benchmark years from the end of the nineteenth century to the beginning of the twenty-first century. This constitutes a substantial contribution to quantitatively analyse the economic development of Latin America, identifying the evolution of regional inequality and studying economic convergence and the formation of convergence clubs (clusters of poor and rich regions). Second, the volume combines a regional and supranational view that is also a valuable contribution to the economic history of Latin America. Is it possible to study the economic history of countries as huge as Argentina and Brazil or as varied as Chile and Bolivia without a regional approach? Does it makes sense to study the economic history of Uruguay without integrating it with that of the Argentine Pampa Humeda and that of Rio Grande do Sul in Brazil? Lastly, from a conceptual point of view, we think that the identification of true “economic territories” beyond political jurisdictions offers a renewed capacity of analysis and, therefore, having this type of accountability available means opening up new opportunities for explanation and interpretation, and renewed questions and hypotheses.

In this chapter, we provide a new data set of regional GDP and GDP per capita for Uruguay between 1870 and 2012. As regards the long-term evolution of regional inequality, we find evidence of a persistent decline from the last third of the nineteenth century up to the 1960s with a strong reversal of the process from then on. The first decade of the twenty-first century, however, shows a new decreasing trend in regional inequality. Montevideo has represented a large share, both demographically and economically, over time as consequence of a privileged access to sea and the fact that the city was built around a natural port with excellent conditions. In addition, agglomeration forces identified with a large market of skilled labour favoured the initial high levels of concentration of production. However, inequality decreased, so other factors compensated these centripetal forces until the 1920s. In particular, the integration of the domestic market with the construction of the railways reduced trade costs and facilitated regional convergence during the First Globalization and the interwar years. After World War I, the motor transport and infrastructure investments reinforced these previous effects. Since the 1930s, a high degree of state intervention in the economy during the so-called import substitution policy period meant relevant equalizer forces: altering relative prices/yields, taking advantage of strategic natural resources, and promoting public enterprises and extensive presence of Public Administration in the territory. Inequality increased in the 1960s–1990s in a context of a new growth model based on low state intervention, with a greater emphasis on the development of financial and services sectors, and the deepening of the international regional trade (PEC, CAUCE, Mercosur). These conditions favoured the economic growth of the most diversified regional economies and more exposed to the Argentine effects (Montevideo, Colonia, Maldonado). After the 2001–2002 crisis, the pattern of regional development changed again and inequality decreased encouraged by a favorable international context in the commodity markets well exploited with a new wave of public–private institutions and policies to promote agro-export value chains, and others policy actions that positively affected, transversally, different sectors. In particular, the institutional framework to promote competitiveness and exports was reinforced (specifically in meat and milk, and in general in innovation and logistics to support agro-export chains) and the government passed two laws referred to regional development and decentralization.

The aim of this chapter is to analyse the comparative evolution of regional inequality over the course of the historical economic development processes in four countries of South West Europe—France, Italy, Portugal and Spain—and nine countries of Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela. Our analysis, which goes back to the nineteenth century, shows that regional income inequality has followed over time what appears now to be an N-shaped evolution in both regions. However, both experiences differ markedly and we identify the main stylized facts of these trajectories. First, Latin America begun the period with higher levels of regional inequality than Europe. Second, the increase in inequality up to the interwar years was more intense in Latin America than in Europe. Besides, the increasing disparities in Europe in this initial period were based on the high territorial concentration of industry while in Latin America inequality mainly grew responding to the specific geography of the natural resources. Third, both regions underwent a period of convergence between the aftermath of the World War II and the crisis of the 1970s, being the process more intense in the European case. In Europe, the spread of industrialization and structural change to a growing number of regions was determinant in the decrease in inequality. In the case of Latin America, however, it was the marked change in economic policy—import substitution industrialization—that constituted the driving force behind the regional convergence. Finally, the crisis of the 1970s and changes in the international political and economic consensus in the 1980s signalled the beginning of a new stage in the evolution of inequality. A context of increasing international economic integration brought to a halt the narrowing of the gap between richer and poorer regions, but in a lower degree in Europe compared to Latin America. In this case, the liberalism typical of the 1980s, as enshrined in the Washington Consensus, favoured reinsertion into the international goods and factor markets and led to the unequal growth of those regions best endowed with resources.

Economic development in Latin America from the end of the nineteenth century shows highly diverse patterns across countries and periods. Argentina, for instance, experienced rapid growth until World War I, following an export-led model, and a relative decline afterwards, whereas economic growth in Brazil and Mexico was faster in the second half of the twentieth century, in both cases driven by state-led industrialization policies. Others as Chile and Peru were blessed with different mining cycles, while experienced industrialization expansion led by the state at mid-twentieth century.

The debate on the relationship between natural resources abundance and economic growth is still open. Our contribution to this field combines a long-run perspective (1870–2014) with the study of a peripheral country in the world economy (Uruguay). The purpose is to build a historical series of natural capital and contrast its level and evolution with the level and growth of GDP, as well as the proximate causes of its economic growth (produced and human capital, exports and terms of trade). We show that natural capital has tended to decline in importance in the economy, while simultaneously becoming more diversified. Although this evolution is consistent in historical terms, we do not find a causal relationship between the abundance of natural resources and economic performance. Instead of a direct relationship, the proximate causes appear to have been important in explaining the evolution of natural capital when we consider three stages of economic growth: physical capital and terms of trade during the agro-exporter model; human capital and exports during the period of import substitution industrialization; and terms of trade from the 1970s afterwards. These factors cause natural capital but not the other way around, leading us to conclude that an abundance of natural capital is an endogenous process.

Most of the regional inequality in Argentina, Chile, and Uruguay stems from differences within the countries rather than from disparities across them. Between the end of the nineteenth century and the second third of the twentieth century, Chile evinced considerable inequality and a U-shaped evolution (reduction of inequality and a slight increase in the 1960s), Uruguay a monotonically declining inequality, and Argentina a U-shaped evolution with decreasing disparities until the beginning of the twentieth century and increasing inequality thereafter. Together, the subnational units exhibited substantial inequality at the end of the nineteenth century, a low in the 1940s, and another local maximum that ended with the collapse of the Import Substitution Industrialization (isi) polices of the 1960s and 1970s. Convergence at the national level depended on periods and countries: convergence in Uruguay in all sub-periods; provincial convergence in Argentina only during the first globalization; and a general convergence in Chile that was hampered by outliers during the first globalization. Convergence at the regional level occurred during the first globalization but not during the mid-twentieth century.

The objective of the Chapter 1 is to present a general overview of the agricultural development in the world periphery to serve as an introduction to this volume, whose aim is to provide a long-term perspective that allows a better understanding of the process of agricultural transformations. This process shows great diversity, especially concerning the drivers of change in regions with low levels of development, institutional restrictions, a variety of distances to the technological frontiers, and different modalities of participation in the international markets. The big trends and stylised facts of the world core and the agriculture of the periphery are described, and the content of each chapter is briefly introduced. Finally, some concluding remarks are proposed to answer the research question: what can we learn from history?

In the last third of the nineteenth century, a large majority of Latin American countries adopted export-led models of growth, mostly based on agricultural exports. In some countries, this strategy produced significant results in terms of economic development but in most of the countries, the strategy was not successful, either because of too slow growth in exports or because linkages with the rest of the economy were very weak and there was no significant growth-spreading effect. After WWII, Latin America turned to a new model of economic development: the import substitution industrialisation (ISI). The ISI policies penalised export-led agriculture. The 1980s and 1990s were characterised by an expansion of adjustment policies and structural reforms. The new strategy consisted of mobilising resources in competitive export sectors, including agriculture. Chapter 13 analyses Latin America’s inability to get the maximum benefit from the changes that have occurred over this period.

Settler economies are characterised by abundant natural resources, but these are not homogeneous between countries. There is very little literature about the economic development of settler economies that identifies differences within the club in terms of natural resources. We look for differences in energy endowments in New Zealand and Uruguay considering coal and suitable conditions for hydroelectric generation. New Zealand and Uruguay were similar in many ways but there were huge differences in income per capita levels. A ‘modern’ production structure requires sufficient energy supply at competitive costs and New Zealand's better energy conditions explain that difference.

In order to understand Uruguay's long-run economic evolution it becomes crucial to interpret its export performance during the First Globalization. The lack of accuracy of official figures, especially official prices used, calls for an adjustment of Uruguayan export series. We have used empirical evidence to test the accuracy of quantities and values of export records, first, according to import partners' records and, second, according to international market prices. Results show a general undervaluation of official export values during the period along with severe distortions in the registers caused by transit trade. We reconstructed new Uruguayan export f.o.b values and an export price index which present a more unstable and less dynamic export evolution than that of neighbouring Argentina. Para entender la evolución económica uruguaya de largo plazo se vuelve crucial interpretar su desempeño exportador durante la Primera Globalización. La falta de precisión de los datos oficiales, especialmente los precios oficiales utilizados, demanda un ajuste de la serie de exportaciones de Uruguay. Hemos usado evidencia empírica para contrastar la precisión de los registros de cantidades y valores de las exportaciones, en primer lugar con respecto a los registros de los socios importadores y luego con relación a los precios de mercado internacionales. Los resultados muestran una subvaloración general de los valores oficiales de exportación durante el período a la vez que severas distorsiones en los registros causadas por el comercio de tránsito. Reconstruimos nuevos valores f.o.b. de exportaciones para Uruguay y un índice de precios de exportación, los cuales muestran una evolución de las exportaciones más inestable y menos dinámica que la presentada por su vecino Argentina. Antonio Tena-Junguito and Henry Willebald are thankful for the financial support of the «Proyecto Ministerio Ciencia y Tecnología de España MCI: ECO2011-25713».

In Uruguay, the efforts to reconstruct national historical statistics have focused on the production side (productive activities) providing confident estimations for a very long period, since 1870. However, little attention has being given to the demand components. Although some sporadic efforts have been made, systematic information of the expenditure components can only be found since 1955, published by the official national accounts system. This article aims at fulfilling this gap and brings a new historical series of gross fixed investment, at current and constant prices, for the period 1870-1955 which are consistent with the information available from national accounts. In addition, new long-term series of gross capital stock, inventory investment, and capital prices are also provided. The sources and methodology are carefully detailed. To validate the estimations, the trajectories of the series are discussed within the national historical context, and comparisons with other variables are offered.

Special Issue on Latin American Inequality. This paper presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions with regard to Argentina (1870 and 1920) and Uruguay (1870). We find that income distribution was relatively high on the eve of the first globalization boom. Thus, inequality is not only the result of globalization, but also a structural feature. Inequality increased between 1870 and 1920, both within individual countries and between countries. Globalization forces do not result in obvious outcomes. Rather, the effect of globalization on inequality depends on the expansion of the frontier and institutional persistence and change in old and new areas. Inequality was clearly high in the wake of the globalization process. This was a particular kind of inequality, which was part of a set of institutions closely linked to the exports of primary goods, sluggish technological change and limited human capital formation. Este artículo presenta una primera estimación de la distribución del ingreso en el Cono Sur de Sudamérica (Brasil 1872 y 1920, Chile 1870 y 1920, Uruguay 1920) y algunos supuestos sobre la desigualdad en Argentina 1870 y 1920, así como en Uruguay en 1870. Encontramos que la distribución del ingreso era relativamente alta en los albores de la primera globalización, por lo que la desigualdad del ingreso no solamente debe ser vista como el resultado de la globalización, sino como una característica estructural. La desigualdad aumentó entre 1870 y 1920, tanto dentro de cada país como entre los países del Cono Sur. Las fuerzas de la globalización no generan resultados obvios. Por el contrario, el impacto de la globalización sobre la desigualdad depende de la expansión de la frontera y de la persistencia y el cambio institucional en las viejas áreas y en las nuevas. La desigualdad fue particularmente alta al culminar la globalización. Se trató de una forma particular de desigualdad, que formó parte de un conjunto de instituciones estrechamente vinculadas a una economía exportadora de bienes primarios, con escaso desarrollo tecnológico y bajos niveles de formación de capital humano. This paper was written as part of the project «A Global History of Inequality in the Long 20th Century», directed by Luis Bértola and financed by CSIC, Universidad de la República, Uruguay.

Latin America is the most unequal region in the world and there is intense debate concerning the explanations and timing of such high levels of income inequality. Latin America was also the region, not including European Offshoots, which experienced the most rapid growth during the first globalization boom. It can, therefore, be taken as an interesting case of study regarding how globalization forces impinged on growth and income distribution in peripheral regions. This article presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions concerning Argentina (1870 and 1920), and Uruguay (1870). We find an increasing trend towards inequality between 1870 and 1920, which can be explained as a process of inequality both within individual countries and among countries. This trend is discussed along three lines: the relationship between inequality and per capita income levels; the dynamics of the expansion to new areas; and movements of relative factor prices and of the terms of trade. During the current globalization process inequality remained apparently stable, as a result of contradictory movements: within-country inequality increased, especially in the three countries with the highest per capita income; on the other hand, between-country inequality was reduced due to the process of club-convergence among the Southern Cone countries. Divergence with core countries was deepened. Some implicit results seem to show that state-led industrialization was featured by decreasing inequality, both within and among countries.

ResumenEste trabajo propone analizar el comportamiento de la distribución del ingreso y la riqueza en las economías templadas de reciente colonización europea para evaluar de qué forma sus condiciones de conformación dieron lugar a determinada configuración productivo-comercialy, a la postre, a la dinámica de largo plazo.Se consideran dos canales para interpretar las relaciones entre patrón distributivo y estructura productivo-comercial —la demanda agregada y los factores institucionales y geográficos— y el análisis se concentra en cuatro de las causas próximas de la especialización: la capacidad de aprendizaje, la innovación y el progreso técnico, la acumulación de capital físico y la formación de capital humano. Se adopta una perspectiva comparada para encontrar diferencias relevantes en el desarrollo de las economías templadas de reciente colonización europea durante el período 1870–1940. Primeramente se realiza una panorámica histórica y, luego, ejercicios econométricos que, de modo indicativo, procuran complementar la visión anterior. La evidencia señala que economías con alta inequidad tienden a conformar una estructura económica con reducida incorporación de conocimiento en la producción y bajo valor agregado. En consecuencia, evidencian peores desempeños en el largo plazo que otras economías que presentan un patrón distributivo más equitativo.

In this work, we highlight the “lessons from history” that can be drawn from a historical discussion and understanding of the past and present of resource-rich developing economies to obtain conditions for successful natural resources-based development. The conceptual core of our answer to those questions will be based on three key ideas. First, abundance of natural resources is closely associated with levels of economic development. Second, we emphasize that an abundance of natural resources is not a fixed situation. It is a process that reacts to changes in the structure of commodity prices and factor endowments, and progress requires capital, labour, technical change and appropriate institutional arrangements. Finally, history shows that institutional quality is the key factor to deal with abundant natural resources and, especially, with the rents derived from their use and exploitation. The ways in which natural resources interact with economic development are mediated by the performance of institutional arrangements in at least three dimensions: (i) institutions’ ability to limit rent-seeking opportunities that divert innovation and resources from productive avenues; (ii) political competition and participation relate to rules governing chief executive recruitment and selection, the fairness and impartiality of electoral processes, and constraints on executive power; and (iii) the characteristics of institutions that reduce transactional risk through proper enforcement of property rights. In sum, history is very clear in showing that natural capital is non-neutral for economic performance but it is a systemic component of economic development where institutional quality is the key component to deal with and create “curses” and “blessings” of natural resources.

Settler economies are characterized by abundant natural resources, but natural capital is not homogeneous between countries and it can produce different consequences in terms of economic performance. This paper discusses the effect of natural resources on economic performance as part of the debate about the “curse of natural resources hypothesis”. We consider energy natural resources and focus on two settler societies, New Zealand and Uruguay. There is very little literature about the economic development of settler economies that identifies differences within the “club” countries that have different natural resources. We look for differences in energy natural endowments, basically coal and suitable conditions for hydroelectric generation, to explain at least partially the different welfare levels between the two economies. In the nineteenth century and the early decades of the twentieth century, New Zealand and Uruguay were similar in many ways such as production structure, movements in production factors and insertion in international markets, but there were huge differences in income per capita levels. To explain this, we need to study other aspects of the economic system. The analytical framework associated with the curse of natural resources offers some interesting lines of argument for our inquiry. The conformation of a “modern” production structure requires there to be sufficient energy supply at competitive costs, to justify exploiting the corresponding natural resources. Our analysis shows that New Zealand’s better performance in coal production and better natural conditions to generate electric energy at low cost –thus offering energy at low prices– explain those differences. New Zealand's advantage in energy endowments at least partially explains the development of a dairy sector, certain energy-intensive manufactures and a more efficient use of railways

In this work, we highlight the “lessons from history” that can be drawn from a historical discussion and understanding of the past and present of resource-rich developing economies to obtain conditions for successful natural resources-based development. The conceptual core of our answer to those questions will be based on three key ideas. First, abundance of natural resources is closely associated with levels of economic development. Second, we emphasize that an abundance of natural resources is not a fixed situation. It is a process that reacts to changes in the structure of commodity prices and factor endowments, and progress requires capital, labour, technical change and appropriate institutional arrangements. Finally, history shows that institutional quality is the key factor to deal with abundant natural resources and, especially, with the rents derived from their use and exploitation. The ways in which natural resources interact with economic development are mediated by the performance of institutional arrangements in at least three dimensions: (i) institutions’ ability to limit rent-seeking opportunities that divert innovation and resources from productive avenues; (ii) political competition and participation relate to rules governing chief executive recruitment and selection, the fairness and impartiality of electoral processes, and constraints on executive power; and (iii) the characteristics of institutions that reduce transactional risk through proper enforcement of property rights. In sum, history is very clear in showing that natural capital is non-neutral for economic performance but it is a systemic component of economic development where institutional quality is the key component to deal with and create “curses” and “blessings” of natural resources.

The aim of this paper is to explain the impact of the establishment of the system of landownership on the income distribution and economic growth of settler economies (Argentina, Australia, New Zealand and Uruguay) during the First Globalization. We consider a conceptual framework based on the New Institutional Economic Theory to describe the process of the distribution of the land property rights in historical perspective and to analyze the characteristics of the land tenure system in a comparative perspective. Our results identify two models of distribution of property rights within the “club”. One of them corresponds to Australasia and, the other, to the River Plate countries, and they represented different consequences in terms of productive expansion and inequality. The land rents absorb a much larger part of total output in River Plate than in Australasia and, as result, it represents a negative incentive to productivity growth that contributes to explain the relative failure of Argentina and Uruguay compared to Australia and New Zealand.

Institutions and their quality are central concepts in the recent development and institutional economics literatures. Our hypothesis is that inadequate contract enforcement has hindered investment and, in consequence, indirectly has had a negative effect on Uruguay’s long-term growth performance. We first review the main concepts and the approaches to define and measure the quality of contract enforcement. We then introduce one measure that has the advantages of being measurable into the past and not depending on subjective judgments; namely, the “contract intensive money” (CIM) indicator proposed by Clague et al. (1999). Using our long series for the CIM indicator, and extending key macroeconomic variables backwards to 1870, we are able to estimate a structural model to explore the plausibility of our hypothesis. In the estimation, based on the seemingly unrelated regressions (SUR) method, we find support for the thesis that the quality of contract enforcement influences growth through its impact on investment. Put differently, our results suggest that poor contract enforcement played a significant role at the root of Uruguay’s underperformance, and in its experience of (relative) long-run decline.

Argentine export growth before the First World War is considered one of the most relevant variables in order to understand the main characteristics of Argentina's long-run modern economic growth properly. The lack of accuracy of the official export series, especially the relative official values used, lies behind some of the controversies and doubts of the historiography when addressing the causes and consequences of Argentina's international convergence. We have used empirical evidence to test the accuracy of quantities and value exports records, first, according to their import partners' records and, second, according to international market prices. Results show that the hypothesis of export price undervaluation bias is correct. In the light of these results we reconstructed a new Argentine export f.o.b. values and price index using international prices valued in pounds sterling which allows us to offer a new proposal indicating a more dynamic Argentine export growth during the Belle Époque years. Financial support from the Spanish project MCI ECO2001-25713. Publicado

The development trajectories of different settler economies varied significantly in the long run. This chapter aims to identify some crucial determinants in these divergent trends. It discusses three basic sets of ideas. First, there existed a group of countries - modern ‘settler societies’. Second, settler societies showed quite different economic performances through time, giving place to quite different economies. Third, economic performance is strongly related to patterns of specialization and structural change, and by the distribution of income and wealth. The chapter explores the idea that distribution could have an impact on the pattern of productive and trade specialization. In turn, productive and trade specialization were considered important factors to explain technological change, productivity growth and economic performance. The evidence presented shows that there is a positive relationship between inequality and the specialization in low value-added activities. Keywords:development paths; settler economies; settler societies; value-added activities

El objetivo de este artículo es explicar el comportamiento de la inflación en Uruguay durante el largo plazo (1870-2010). Se utiliza un modelo de inflación monetaria, pues se entiende que la trayectoria de largo plazo de la inflación debería estar determinada por las condiciones de equilibrio en el mercado de dinero. Se estima una curva de Phillips del tipo forward-looking, que incluye como variable explicativa de las expectativas de inflación el crecimiento del núcleo monetario (definido como la tasa de crecimiento tendencial de la oferta nominal de dinero que excede al crecimiento de largo plazo de la demanda real de dinero, el que es guiado por la evolución del producto potencial (output adjusted core money, OACM). Se encuentra que el impacto del OACM en la inflación es positivo y significativo, aunque no se rechaza que en el corto plazo sea igual que otros efectos. Sin embargo, en el largo plazo, el OACM tiene un impacto unitario en la tasa de inflación. A partir de la comparación del OACM con la inflación, se construye un indicador de monetización que permite indagar sobre los procesos de desmonetización y remonetización que experimentó esta economía en los últimos 140 años

The elaboration and systematization of historical GDP series and its components have an important field of study over the last decades (CEPAL 2009, Smits et.al. 2009, Timmery De Vries 2007). There have been an increasing interest in the comparison of economic development region and important efforts have been made to construct long run national accounts. In Uruguay, the System of National Accounts began in 1955, and for the previous period we count on historical estimations based on different methodologies and coverage. Several factors, such a new base year for 2005, the availability of welfare indicators and the necessity to count on good measures of the economic performance, have motivated us to do a review of historical estimation and the methods, in order to construct consistent series. The general objective of this paper is, therefore, to estimate a homogeneous and consisten long run GDP series for Uruguay (1870-2011), in nominal and real terms, considering total GDP, per capita and sectorial composition. We present a review of the available historical estimation of GDP and its sectorial components, proposing different scenarios. We validate our results by comparing Uruguayan's performance to other countries and assessing its consistency with the historical context. Finally, we present a long run overview of the Uruguayan GDP and GDP per capita describing its growth rates and volatility according to the different "development models".