The Politics of Property Rights: Political Instability, Credible Commitments, and Economic Growth in Mexico, 1876-1929 (Political Economy of Institutions and Decisions)

Cover......Page 1
Half-title......Page 3
Series-title......Page 5
Title......Page 7
Copyright......Page 8
Dedication......Page 9
Contents......Page 11
TABLES......Page 12
List of Abbreviations......Page 17
Acknowledgments......Page 19
1 Introduction......Page 25
THE PARADOX OF GROWTH AMID INSTABILITY......Page 26
METHODS AND APPROACHES......Page 33
2 Theory......Page 42
CREDIBLE COMMITMENTS AS PRIVATE CONTRACTS......Page 45
Implications......Page 47
Third-Party Enforcement......Page 50
VERTICAL POLITICAL INTEGRATION......Page 53
Characteristics of Vertical Political Integration......Page 56
VPI AND POLITICAL INSTABILITY......Page 60
3 VPI Coalitions in Historical Perspective......Page 65
THE POLITICAL ECONOMY OF PORFIRIAN MEXICO......Page 66
Private Interests and Public Policy during the Porfiriato......Page 71
THE REVOLUTION BEGINS, 1910–1914......Page 75
CIVIL WAR, 1914–1917......Page 80
POST–CIVIL WAR INSTABILITY, 1917–1929......Page 85
4 Finance......Page 104
FINANCIAL SYSTEMS......Page 105
SOLVING THE COMMITMENT PROBLEM IN PORFIRIAN MEXICO......Page 107
Negotiated Agreement......Page 108
Enforcing the Agreement......Page 112
Implications for Financial Development......Page 114
Predation under Huerta and Carranza......Page 117
The Absence of Credible Commitments......Page 121
Establishing a Credible Commitment......Page 126
Surviving the Revolution......Page 132
Market Structure and Competition......Page 136
New Market Entrants......Page 137
Risks and Returns......Page 138
Investor Expectations......Page 143
CONCLUSIONS......Page 146
5 Industry......Page 148
MANUFACTURING BEFORE THE REVOLUTION......Page 149
Enforcing the Porfirian VPI Coalition......Page 159
THE IMPACT OF THE REVOLUTION......Page 161
Violence and Civil War......Page 162
Property Rights to Trade Protection......Page 164
Organized Labor as a Third-Party Enforcer......Page 167
Profit Sharing......Page 169
Trade Protection, Organized Labor, and the VPI Coalition in Manufacturing......Page 171
VPI Coalitions in Manufacturing......Page 175
Surviving the Revolution......Page 178
Recovery of Production......Page 184
Investor Confidence and Expectations......Page 186
New Investment......Page 194
Ownership Continuity......Page 199
Productivity......Page 204
CONCLUSIONS......Page 211
6 Petroleum......Page 214
DEVELOPMENT OF THE INDUSTRY UNDER DÍAZ......Page 216
THE IMPACT OF REVOLUTIONARY INSTABILITY......Page 222
Surviving the Revolution......Page 224
Rents from Taxes and Production......Page 225
Output and Investment......Page 236
Taxes......Page 245
Profits......Page 247
Investor Perceptions......Page 254
CONCLUSIONS......Page 258
7 Mining......Page 260
DEVELOPMENT OF THE INDUSTRY UNDER DÍAZ......Page 261
THE REVOLUTION......Page 277
INSTITUTIONAL REFORM......Page 286
Survival......Page 290
Investment......Page 294
Output......Page 302
Taxes......Page 303
CONCLUSIONS......Page 306
8 Agriculture......Page 309
Early History......Page 313
Agriculture in Porfirian Mexico......Page 315
Violent Conflict......Page 323
Institutional Change......Page 329
Enforcement of the Property Rights System......Page 331
ECONOMIC PERFORMANCE......Page 339
Staple Production......Page 340
Export Agriculture......Page 347
Fertilizer and Machinery Imports......Page 359
CONCLUSIONS......Page 363
9 Conclusions......Page 366
HISTORY......Page 367
POLITICAL SCIENCE......Page 375
ECONOMICS......Page 378
References......Page 383
Index......Page 399