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The Marshall Plan: A Reality Check

Author

Listed:
  • Crafts, Nicholas

    (University of Warwick)

Abstract

This paper surveys the literature on the Marshall Plan which was designed to help the reconstruction of Europe after World War II. A basic description of how the Marshall Plan was implemented is provided but the focal point is a consideration of the impact of American aid on European growth. It is concluded that the direct effects were positive but modest. The indirect effects working through induced policy changes may have been larger. If so, the Marshall Plan may be thought of as a successful structural adjustment program of the kind advocated by believers in the Washington Consensus.

Suggested Citation

  • Crafts, Nicholas, 2011. "The Marshall Plan: A Reality Check," CAGE Online Working Paper Series 49, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:49
    as

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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/49.2011_crafts.pdf
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    References listed on IDEAS

    as
    1. Eichengreen, Barry & Uzan, Marc, 1992. "The Marshall Plan: Economic Effects and Implications for Eastern Europe and the Former USSR," CEPR Discussion Papers 638, C.E.P.R. Discussion Papers.
    2. Harald Badinger, 2005. "Growth Effects of Economic Integration: Evidence from the EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(1), pages 50-78, April.
    3. Rodrik, Dani, 2002. "Feasible Globalizations," CEPR Discussion Papers 3524, C.E.P.R. Discussion Papers.
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    5. Dollar, David & Svensson, Jakob, 2000. "What Explains the Success or Failure of Structural Adjustment Programmes?," Economic Journal, Royal Economic Society, vol. 110(466), pages 894-917, October.
    6. S Broadberry & Nicholas Crafts, 1996. "British Economic Policy and Industrial Performance in the Early Post-War Period," CEP Discussion Papers dp0292, Centre for Economic Performance, LSE.
    7. Nancy Birdsall, 2010. "The Washington Consensus: Assessing a Damaged Brand - Working Paper 213," Working Papers 213, Center for Global Development.
    8. Bordo,Michael D. & Capie,Forrest, 2006. "Monetary Regimes in Transition," Cambridge Books, Cambridge University Press, number 9780521030427.
    9. Doucouliagos, Hristos & Paldam, Martin, 2011. "The ineffectiveness of development aid on growth: An update," European Journal of Political Economy, Elsevier, vol. 27(2), pages 399-404, June.
    10. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
    11. Bacha, Edmar L., 1990. "A three-gap model of foreign transfers and the GDP growth rate in developing countries," Journal of Development Economics, Elsevier, vol. 32(2), pages 279-296, April.
    12. Gavin Cameron & Chris Wallace, 2002. "Macroeconomic Performance in the Bretton Woods Era and After," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(4), pages 479-494.
    13. Prados de la Escosura, Leandro & Rosés, Joan R. & ,, 2010. "Stabilization and Growth under Dictatorship: The Experience of Franco's Spain," CEPR Discussion Papers 7731, C.E.P.R. Discussion Papers.
    14. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
    15. Nelson, Richard R & Wright, Gavin, 1992. "The Rise and Fall of American Technological Leadership: The Postwar Era in Historical Perspective," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1931-1964, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Les leçons du plan Marshall pour le plan de relance européen
      by nadine in Bloc-Notes Eco on 2021-10-29 14:06:03
    2. Lessons from the Marshall Plan for the European Recovery Plan
      by remi.alleman in Eco Notepad on 2021-10-29 14:27:57

    Citations

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    Cited by:

    1. Crafts, Nicholas, 2013. "Long-Term Growth in Europe: What Difference does the Crisis Make?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 224, pages 14-28, May.
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    3. Carter, Patrick & Postel-Vinay, Fabien & Temple, Jonathan, 2015. "Dynamic aid allocation," Journal of International Economics, Elsevier, vol. 95(2), pages 291-304.

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