Exchange rate overvaluation and agrarian ground rent transfers in Uruguay: 1955-2019

Abstract

This paper measures with a novel methodology the amount of agrarian ground rent intersectoral transfers in Uruguay and its relative weight in the national amount of surplus value during the period 1955-2019. In order to this, the paper identifies the mechanisms through which ground rent is transferred from landowners to industrial and commercial capitals. The main results show that agrarian ground rent transfers, in particular through exchange rate overvaluation, was a recurring mechanism that has been central for capital accumulation. These transfers complement the surplus value appropriated by individual capitals, however, at the same time, consolidate the rentier nature of Uruguay due to the chronic overvaluation of exchange rate.