Regional Structure and Economic Federalism in Argentina

Authors

DOI:

https://doi.org/10.46468/rsaap.18.2.a4

Keywords:

governance, federalism, surpluses, regulation, regions

Abstract

The problem of economic federalism in Argentina is closely related to its regional structure. This paper proposes a characterization of this structure as a contested and composite centrality, shaped by three main regions: the city of Buenos Aires, the Buenos Aires metropolitan area, and the interior of the Pampas region. The hypothesis is that the tension between these regions revolves around the primary scarce resource for peripheral economies: foreign currency. This tension is believed to be channeled through three institutional mechanisms: the foreign exchange market, export duties, and the capital inflow/outflow policy. Finally, some stylized facts of the Argentine macroeconomy are interpreted based on these hypotheses. The paper concludes by observing that economic federalism in Argentina is at play in the governance of these mechanisms.

Published

2024-11-29