The Regional Economic Structure of Argentina: An Analysis Focusing on Recent Major Macroeconomic Changes and Trends

Abstract

Two aspects of the Argentine regional economic structure are presented. The first is the performance of the nation's two principal sectors: the industrial sector and the agricultural sector to shed some light on macroeconomic issues with stress on geographic and regional features. The second aspect to be proved is Argentina's economic recovery since early 1991 and the current economic development policy to prognosticate “feasible regional impacts” of the privatization program on three counts: institutional stability, investment growth and efficiency in resource allocation. After a long period of stagnation, economic isolation and hiper inflation which have plagued the nation, Argentina has made significant progress in the control of the chronic inflation, at present in line with international levels. The capital inflows are also significant as investment has become the basic tool for economic growth. Increases in investment since the implementation of the Convertibility Plan along with the Economic Deregulation and Privatization of Public Entities suggest that capital accumulation is likely to continue. The continuation of drastic fiscal, administrative and social welfare reforms will provide the framework for strengthening both the state and private enterprises in their respective functions and genuine responsabilities of serving the community.