Dependency, the Credit Market, and Argentine Industrialization, 1860–1940

The factors responsible for Latin American economic “dependency” have long been debated by economic historians. In this article, Professor Guy considers the example of Argentine industrialization between 1870 and 1940. Argentine reliance upon foreign capital, she concludes, was due much more to local Argentine institutions — the commercial law, the stock market, and the government inspection bureau — than to any pressures from abroad. She adds that, though dependency theory has its limits, by focusing attention on local institutions, it remains a valuable tool for understanding Third World development.