The recent European debt crisis has renewed interest as to why debtor countries honour their foreign debts and subscribe to respectively burdensome rescheduling conditions. While the cost of defaulting in a domestic financial system has been recognised as a main motive for repayment, the factors that cause sovereign states to refrain from debt repudiation are not fully understood. This article investigates the reasons behind the repayment decision and weak negotiating position of the Mexican government following the 1982 debt crisis. It shows that leading commercial banks had considerable amounts of external loans in their books, and that Mexican policymakers lacked the foreign exchange access they needed to secure the stability of the domestic banking system. The high exposure of domestic banks to Mexican debt and their heightened dependence on foreign capital worked as mechanisms that allowed international creditors to enforce their claims and deterred Mexico from declaring a unilateral default.

This article makes a contribution to the empirical and methodological discussion on the standard of living in Latin America during the colonial period. It presents evidence obtained from primary sources on the evolution of nominal wages, cost of living and real wages for 10 occupational categories in the region of Montevideo between 1760 and 1810. The results place rural laborers and masons in Montevideo below subsistence levels until at least the first decade of the 19th century, a finding that is difficult to reconcile with the demographic and productive growth of the region at the same time. Wages may not be the main component in the structure of family income among the subordinate sectors of the colonial Río de la Plata.

This essay aims to introduce an issue of the RHE-JILAEH dedicated to the reconstruction of historical trade statistics of Latin American countries. It comments on the early perceptions of the quality and utility of historical trade statistics and on the way in which more recent analyses have overcome the distrust that prevailed until the last third of the 20th century. It then summarises the different criteria and methodologies that have been used to assess the accuracy and reliability of trade statistics in order to make them useful for the purpose of reconstructing new, more complete and precise trade series or re-estimating those available. The introduction ends with a brief description of the contents of this volume.

This article examines Argentine relations with multilateral agencies and bankers during the first years of the last military dictatorship. It begins with an overview of relations and the external situation before the rise of the military and why a new economic team sought and restored Argentine credit standing. There follows a review of how links with the U.S. Treasury and international institutions lost significance and how cross-country financial intermediation, carried out mainly by leading state banks, gave foreign bankers a key role in the financing of Argentina’s foreign exchange needs. It also emphasises explicit and underlying motivations in the behaviour and policies of all actors involved and offers an evaluation of former Minister Martínez de Hoz’s efforts to justify these policies in the early 1980s.

In Mexico during the protectionist economic regime a process of industrial modernization was carried out which led to the incorporation of different types of technologies into the structures and processes of production or consumption. The patent policy was implemented with the interest of encouraging the attraction of novel technologies, but their contribution was quite limited due to the nature, design and operation, with which it was conformed. Therefore, the patent policy did not drive patenting activity in a high and sustained manner. It was ineffective to contribute to the development of technologies generated by local actors, and marginally propitiated the productive exploitation of patents.

Labour market transformation and inequality were fundamental aspects in the transition to the industrialisation. This article reconstructs the Barcelona’s area economic structure across the 18th and 19th centuries through the Marriage Licences of the Barcelona’s Cathedral. These documents registered a proportional tax paid by the spouses’ according to their occupational and social status. Since 1780, an important decrease in the primary sector and an increase in the secondary and tertiary sectors are observed. Inequality between economic sectors rose and also within the secondary sector (textile) due to the proletarianization of the workers. Conversely, there was not an increase in inequality in the primary sector while it decreased in the tertiary sector.

This article discusses the available sources of information on the value and volume of Peru’s exports and estimates the current value of exports, the index of export prices and the quantum of exports using a wide variety of sources. By relying on several sources, I estimate the first complete series of the current value of exports for Peru for 1830-1930. Importantly, I adjust other studies’ estimates by taking into account the deficiencies of foreign sources and by distinguishing between exports of specie and of minerals. The estimations show that exports experienced substantial growth in the 1850s and 1860s, during the Guano Era. Exports stagnated in the 1870s and dropped during the War of the Pacific (1879-1883) before recovering in the late 19th and early 20th centuries, especially during World War I.

Historiography has payed less attention to imports than exports from the last quarter of the nineteenth century to the beginning of World War I. On the one hand, this is explained by the crucial and more visible part that exports played in fostering economic growth. On the other, the reason why imports have been less studied is the high level of disaggregation of the data available. In this paper, we analyse the official Argentine statistics as the main source for a reconstruction of imports. Then, we recalculate the balance of trade using our corrected export series. Additionally, we propose a research agenda based on gaps in the specialised literature and the possibilities given by the use of the official statistics.

This paper aims to evaluate the accuracy of official Bolivian foreign trade statistics. Results show large discrepancies between Bolivian records and those of its main trade partners during the First World War. Whereas the gap decreased thereafter, it stayed particularly high in the case of exports. This seems to be explained by mistakes in the geographical assignment by the trade partners rather than by an overvaluation of official Bolivian figures. This suggests that landlockness may have had a significant negative effect on the accuracy of trade statistics from the, a priori, more reliable countries. The study also helps to revisit the debate concerning the effect that tin exploitation had on the rest of the Bolivian economy during the first half of the 20th century.

After the triumph of the October Revolution in Russia the issue of how to develop a backward economy towards a socialist society took pre-eminence. The relationship between agriculture and industry was one of the key issues. In this respect, the Left Opposition argued in favour of a Big Push for industrialisation financed through the exploitation of the peasantry, while the Right Deviation defended adjusting industrial growth to the development of the agricultural surplus. The First 5-Year Plan meant the complete victory of one of these positions. Unfortunately, all discussions were banned subsequently, the leading figures of these two factions were expelled from the Party and many of them executed. Yet, this problem was of the utmost importance for underdeveloped countries, as Development Economics was to discover 25 years later. This new branch of Economics would have benefitted greatly from the lessons of the Soviet experience regarding industrialisation, as well as from the theoretical discussions surrounding it.

This article attempts to establish a quantitative revision of issuing banks created in Andalusia in the middle of nineteenth century founded as a result of liberal banking laws in 1856, comparing with those of similar dimension in other Spanish provinces. Possible causes of their soon extinction are discussed, like the financial worldwide crisis in the 1860s, the monopoly issue granted to the Bank of Spain in 1874 and the specific circumstances of regional banking. The article tries also to evaluate the performance of Bank of Spain branches, since 1875 until 1914, in those Andalusian places where issue banks were independent before and in relation to the fluctuations of the regional economy in that period.

The monetary policies of the decade studied had a direct influence on the evolution of real wages in Ecuador. The gold standard brought with it the increase in real wages until 1932. In February 1932, the Ecuadorian Government decided to abolish the gold standard which, together with a heavy public expenditure, produced a significant increase in money supply causing high levels of inflation. The evolution of real wages in Ecuador is similar to the evolution registered in Latin America in two important aspects: in both cases an upward trend in real wages can be observed once the international crisis began; after the increase in the purchasing power of wages, there is a decline. This study is the first research trying to understand the impact of the Great Depression in Ecuador through the evolution of real wages.

To date, research on the economic history of Brazil during the 19th century has relied on official foreign trade statistics, the accuracy of which has repeatedly been put into question. This paper provides insights into the accuracy of the official series by examining the accuracy of the export and import series for Brazil during the 19th century. We re-estimate the official import series using trading partner sources, and find that the official series was marginally under-valued during certain periods of the 19th century. Furthermore, we provide new upper- and lower-bound estimates of the export series by testing different assumptions regarding the size of the cost, insurance and freight to free on board factor adjustments. Finally, we introduce a new import price index for the period 1827-1913.

The construction of the rail network in Spain was supported by public aid. A part of them were “subvenciones adicionales”, which came from the exemption of the payment of customs duties on the imports of railway equipment. The exact amount of these grants is only known after 1870 when they were rather small. In this paper, we quantified them for the period 1857-1886 in the company MZA, by then the largest in the country. Moreover, we estimate the costs of the construction of the railway lines of that company until 1869 and how much did each of the sources of funding, public and private contributed. The main conclusion is that in MZA the State’s grants were higher than the shareholders’ investment.

This article presents, for the first time, a continuous series of value of Honduran exports and imports for the period 1880-1930, extending the series previously available from Notten (2012). The new series were constructed based on the official statistics of the main trading partners of Honduras (United States, Great Britain, Germany and France) corrected from Honduran and complementary sources. The correction criteria applied are based on the results of a previous reliability validation exercise. The data obtained allow to delimit a new chronology of the foreign trade of Honduras where the “export age” began before the banana export boom that took place between 1903 and 1930.

This research note discusses the accuracy of the main sources used to study the foreign sector during the export-led growth process in Chile. Chilean foreign trade statistics are available for the period under analysis (1850-1930) and offered a good overview of products exported and imported. Bilateral trade data are also available providing information of exports and imports by origin and destiny. Although more research is needed on trade prices, we conclude that Chilean statistics are reliable and provide a way for understanding the export-led growth in Chile and the trade performance of the Chilean partners.

In 1821 Mexico achieved its independence from Spain. What happened in the following 50 years has become a field of dispute for economic historians. The lack of reliable quantitative information in many fields of economic activity has led to contrasting interpretations, none of which has been accepted as definitive. The aim of this paper is to reconstruct the yearly values of Mexico’s foreign trade in that period, with the purpose of providing elements to start filling this significant gap in Mexico’s historiography. It relies on official trade statistics and consular reports from Mexico’s main trading partners. It provides new series of imports and (commodity and specie) exports, and a provisional view of the balance of trade for most of the 1821-1870 period.