Regional Growth and the Persistence of Regional Income Inequality in Argentina in the First Half of the Twentieth Century

Abstract

AbstractSouthern and central regions of Argentina moved from being relatively poor in the sixteenth century to being the richest in the country today. Although there is some evidence of this reversal, the process of regional growth in Argentina in the first half of the twentieth century is, in the main, unknown. In this paper, we present an estimation of the GDPs of Argentina's 25 provinces in 1914: this is the first consistent estimation of this variable for any period before the 1950s. Our results confirm that in 1914 the city of Buenos Aires and some districts in Patagonia had the highest per capita GDP, and a comparison with the available data for 1953 shows strong persistence in incomes per capita in this period; sectoral analysis of provincial GDPs suggests that growth in the leading districts was driven by economies of agglomeration in some cases and land abundance in others.