Structural change trajectories and industrial policy approaches: A proposal based on the Argentine experience

From early 2003 to late 2011, the Argentine economy followed a path of sustained, rapid growth, with a brief hiatus from late 2008 to mid-2009 owing primarily to the repercussions of the international crisis. This period included an initial post-crisis recovery phase, which both preceded and followed the collapse of the convertibility regime, and a later phase of genuine and equally solid growth. By late 2005, and after more than 10 consecutive quarters of overall expansion, GDP growth had matched the high recorded in 1998, a clear indication of the gravity of the domestic situation at the start of the century. After equalling that historic high, economic activity continued on its path of vertiginous growth, posting annual rates on a par with China for over five years. Several factors contributed to this performance: the way in which the convertibility crisis was resolved resulted in favourable supply-side conditions, while demand was driven by an excellent international climate and by deliberate, effective expansionary policies at home. The latter two factors were particularly true of much of this period and set up a virtuous growth dynamic.

Related Subject(s): Economic and Social Development