Long-Term Economic Effects of Populist Legal Reforms: Evidence from Argentina.

ABSTRACT: In this paper, we examine the consequences of populist government for long-term economic growth and development. To this end, we estimate the long-term growth impact of the Juan Péron's political rule in Argentina, which led to a comprehensive overhaul of the institutional framework laid by the Argentine founding fathers in the 1853 Constitution. Our hypothesis is that the progressive substitution of a growth-enhancing institutional framework by exclusionary growth-distorting frameworks explains Argentina's economic decline from one the world's richest countries on the eve of World War I to an underdeveloped nation in the present day. We emphasize the erosion of the rule of law and restraint of economic freedom during Perón's first government (1943-1955) as two fundamental coadjutant cause

SUBMITTER: Marzetti M 

PROVIDER: S-EPMC9150839 | biostudies-literature | 2022 May

REPOSITORIES: biostudies-literature