Argentina's incomplete industrialization between 1895 and 1940 has long puzzled scholars studying Latin America and comparative economic history. By 1914, Argentina had the prerequisites for industrialization including the most dense railroad network in Latin America, a well-integrated consumer market, and a relatively active stock exchange. At the turn of the century, entrepreneurial families expected Argentine industry to take-off and invested heavily in diverse enterprises. Despite investments and attempts made by the Argentine government and entrepreneurs to stimulate the industrial sector, industrialization still failed to propel or sustain economic growth. What were the obstacles to successful industrialization? This research focuses on the business environment and firms' behaviors to explain Argentina's forestalled industrialization. This project will evaluate the circumstances by which industry emerged along with the decision-making processes and rational choices made by Argentine entrepreneurs. The objectives are: 1) to detail the structure of production in industry; 2) to assess how government policies affected entrepreneurial decisions; 3) to assess how accessibility to capital markets and the size of profits motivated entrepreneurial behavior; 4) to gauge the productivity and investment performance; 5) and finally, to employ the Argentine case as a model for explaining unsuccessful industrialization in poorer countries that also failed to achieve successful industrialization.
