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External Liberalization, Economic Performance and Social Policy$
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Lance Taylor

Print publication date: 2001

Print ISBN-13: 9780195145465

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195145465.001.0001

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Argentina: Balance‐Of‐Payments Liberalization: Effects on Growth, Employment and Income

Argentina: Balance‐Of‐Payments Liberalization: Effects on Growth, Employment and Income

Chapter:
(p.57) 3 Argentina: Balance‐Of‐Payments Liberalization: Effects on Growth, Employment and Income
Source:
External Liberalization, Economic Performance and Social Policy
Author(s):

Roberto Frenkel

Martín González Rozada

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195145465.003.0003

This chapter gives a summary analysis of the growth process, the performance of the labor market, and the evolution of income and wages in the context generated by the market‐friendly structural reforms of the early 1990s in Argentina, which targeted the privatization of a large proportion of state‐owned enterprises, as well as trade and financial openings; the stabilization policies that were applied in the 1990s are also discussed. There are seven sections to the chapter: the first presents some aspects of the macroeconomic dynamics, mainly in the form of graphs that facilitate the comparison between the 1980s and 1990s; the second presents an econometric model that describes the macroeconomic performance in the 1990s and summarizes the estimation results; the third focuses on the behavior of the urban labor market at the national level and in Greater Buenos Aires (GBA); the fourth includes the formulation and estimation of an econometric model of the aggregate urban labor market; the fifth uses GBA data to analyze variations in urban employment by sector of activity and sociodemographic characteristics; the sixth studies the performance of production, employment, and productivity in the manufacturing sector using data from the industrial survey, and an econometric model of labor demand in this sector is presented – the econometric estimations, together with the trade information on the manufacturing sector, are utilized to separate and calculate the different effects on the employment contraction in this sector. The last section focuses on income and its distribution.

Keywords:   balance of payments, economic growth, economic policy, income distribution, liberalization, manufacturing, privatization, productivity, stabilization, structural reform

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