Factor endowments and agricultural productivity in Latin America on the eve of World War I

This paper quantifies agricultural performance in Latin America in the early 20th century, complementing previous qualitative studies with a comparative and historical perspective. The analysis covers ten countries – Argentina, Brazil, Colombia, Chile, Cuba, Mexico, Nicaragua, Peru, Uruguay, and Venezuela – during the years preceding World War I. We identify three broad agrarian paths. Argentina and Uruguay featured extensive, high-productivity, export-oriented systems that promoted broader economic development. Chile, Cuba, and Nicaragua exhibited more intensive but labour-demanding systems, with moderate productivity and uneven technological progress. Venezuela, Mexico, Colombia, Brazil, and Peru maintained low-productivity, traditional agriculture with limited potential for economic growth. These contrasting structures highlight the diversity of Latin American agrarian capitalism and help explain the uneven capacity of national economies to initiate structural transformation. Overall, differences in factor endowments played a decisive role in shaping productivity patterns, with land-abundant regions favouring labour-saving technologies.