Argentina’s external insertion during both Convertibility and Post-convertibility: agro-export specialization and financial dependence

Abstract

This article contributes to the debate around the meaning and extent of changes to Argentina’s economy between 2002 and 2015 (usually referred to as the “Post-Convertibility” period), in contrast to the policies of 1991-2001 (known as the “Convertibility” period), as these changes may have altered operation of the Argentine economy following the abandonment of both the industrialization of import substitution and IMF adjustment policies. Specifically, this research focuses on external insertion, both commercial and financial. It is concluded that a common element throughout both periods was the persistence of trade specialization based on the primary sector and low value added products, while Argentina’s financial insertion in the world economy was characterized by vulnerability and dependency, subject to the reactions of international commodity prices to changes in geopolitics and the global economy. These factors continue to determine financing conditions for the Argentine economy.