External integration, structural transformation, and economic development: Evidence from Argentina 1870-1914

Pablo Fajgelbaum, Stephen Redding 12 July 2014

a

A

External economic integration is often argued to be an important driver of economic development, as it raises income through specialisation in comparative-advantage sectors, provides low-cost access to imported goods, and shapes the pattern of structural transformation from agricultural into non-agricultural activities. These relationships are typically examined at the aggregate level, implicitly treating each country as a point in space.

a

A

Topics:  Development Economic history International trade

Tags:  integration, comparative advantage, trade costs, Argentina, specialisation