“Don’t cry for me, Argentina”: how federalism has contributed to the economic crisis in Argentina and how it has affected its democracy
Institutions; Argentina; Federalism; Fiscal Federalism; Rentier Theory; Democracy
Argentina is a country that has experienced economic crises over the last two decades. To find out why, the role of institutions in the economy and their influence on a country's economic performance, as well as in its democracy, is analyzed. Specifically, it examines Argentina’s fiscal federalism is studied and its dysfunctionality. Based on the article by Gervasoni (2010), an index of subnational democracy is developed for each Argentine province and the city of Buenos Aires, which is the dependent variable in a random effects model. Using this model, we observe the influence of the transfer of federal resources to the provinces on their democracy, as well as the influence of the national leader with the results obtained, we conclude that both federal transfers and the national leader have an impact on subnational democracy