The Deindustrialization Process in Argentina and its Structural Consequences. An Analysis of the Period 1976-2010

This paper examines the process of deindustrialization in Argentina and analyses the main consequences. The period examined can be broken down into two dissimilar phases: 1976-2002, and 2003-present day. From 1976 to 2002, Argentina’s economy experienced unusual volatility leading to serious deterioration of key socio-economic variables. This period was marked by the implementation of a pro-market agenda aimed at stimulating quick external opening, an accelerated appreciation of the local currency, and widespread deregulation of domestic markets. Within this context, Argentina suffered a surprisingly intense and extensive process of deindustrialization. Starting in 2003, under a new political and economic context, this downward trend in industry was interrupted. Nevertheless, the structural regression resulting from the previous period left a pronounced mark. Consequently, Argentina’s industrial structure is characterized by high concentration, an unbalanced productive framework, and local sector specialization geared towards producing undifferentiated goods.