Income Distribution in the Latin American Southern Cone during the First Globalization Boom and Beyond Articles uri icon

authors

  • BERTOLA FLORES, LUIS EDUARDO
  • CASTELNOVO, CECILIA
  • RODRÍGUEZ, JAVIER
  • WILLEBALD REMEDIOS, HENRY FRANCISCO

publication date

  • March 2010

start page

  • 452

end page

  • 485

issue

  • 5-6

volume

  • 50

International Standard Serial Number (ISSN)

  • 0020-7152

Electronic International Standard Serial Number (EISSN)

  • 1745-2554

abstract

  • Latin America is the most unequal region in the world and there is intense debate concerning the explanations and timing of such high levels of income inequality. Latin
    America was also the region, not including European Offshoots, which
    experienced
    the most rapid growth during the first
    globalization boom. It can, therefore, be taken as an interesting case
    of study regarding
    how globalization forces impinged on growth and
    income distribution in peripheral regions. This article presents a first
    estimate
    of income inequality in the Southern Cone of South
    America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and
    some
    assumptions concerning Argentina (1870 and 1920),
    and Uruguay (1870). We find an increasing trend towards inequality
    between
    1870 and 1920, which can be explained as a process
    of inequality both within individual countries and among countries. This
    trend is discussed along three lines: the
    relationship between inequality and per capita income levels; the
    dynamics of the
    expansion to new areas; and movements of relative
    factor prices and of the terms of trade. During the current
    globalization
    process inequality remained apparently stable, as a
    result of contradictory movements: within-country inequality increased,
    especially in the three countries with the highest
    per capita income; on the other hand, between-country inequality was
    reduced
    due to the process of club-convergence among the
    Southern Cone countries. Divergence with core countries was deepened.
    Some
    implicit results seem to show that state-led
    industrialization was featured by decreasing inequality, both within and
    among
    countries.