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The Marshall Plan: Economic Effects and Implications for Eastern Europe and the Former USSR

Author

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  • Eichengreen, Barry
  • Uzan, Marc

Abstract

This paper is a first attempt to evaluate the economic effects of the Marshall Plan. We find that US aid had a significant impact on Europe's recovery from World War II. The recipients of large amounts of Marshall aid recovered significantly faster than other industrial countries. Strikingly, however, we find that the obvious channels through which the Marshall Plan could have affected European recovery - stimulating investment, augmenting capacity to import and financing infrastructure repair - were relatively unimportant. Rather, the crucial role of the Marshall Plan was to facilitate the restoration of financial stability and the liberalization of production and prices.

Suggested Citation

  • 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.
    • Handle: RePEc:cpr:ceprdp:638
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    Citations

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    Cited by:

    1. Rachel M. Gisselquist, 2014. "Aid and Institution-Building in Fragile States," The ANNALS of the American Academy of Political and Social Science, , vol. 656(1), pages 6-21, November.
    2. Eichengreen, Barry, 1993. "A Marshall Plan for the East: Options for 1993," Center for International and Development Economics Research (CIDER) Working Papers 233185, University of California-Berkeley, Department of Economics.
    3. Casella, Alessandra & Eichengreen, Barry, 1996. "Can Foreign Aid Accelerate Stabilisation?," Economic Journal, Royal Economic Society, vol. 106(436), pages 605-619, May.
    4. Mirena Mitova, 2023. "Trade with the Enemy – Trade and Economic Contacts as a Means for the Economic Reconstruction of Bulgaria at the End of 1944 and in 1945," Proceedings of the Centre for Economic History Research, Centre for Economic History Research, vol. 8, pages 176-185, November.
    5. Diego Comin & Bart Hobijn, 2011. "Technology Diffusion and Postwar Growth," NBER Chapters, in: NBER Macroeconomics Annual 2010, volume 25, pages 209-246, National Bureau of Economic Research, Inc.
    6. Prados de la Escosura, Leandro, 2005. "Assessing growth, inequality, and poverty in the long-run : the case of Spain," IFCS - Working Papers in Economic History.WH wh054205, Universidad Carlos III de Madrid. Instituto Figuerola.
    7. Prados de la Escosura, Leandro, 2006. "Growth and structural change in Spain, 1850-2000," IFCS - Working Papers in Economic History.WH wp06-05, Universidad Carlos III de Madrid. Instituto Figuerola.
    8. Assen Slim, 2015. "L’aide européenne (1989-2020) aux PECO sous le prisme de l’économie politique internationale (EPI)," Post-Print hal-01271881, HAL.
    9. Crafts, Nicholas & Toniolo, Gianni, 2008. "European Economic Growth, 1950-2005: An Overview," CEPR Discussion Papers 6863, C.E.P.R. Discussion Papers.
    10. Dooley, Michael, 1999. "Medium-Term Financing Needs of the Independent States of the Former Soviet Union," Journal of Policy Modeling, Elsevier, vol. 21(1), pages 41-66, January.
    11. Jin, Zhangfeng, 2021. "The Legacies of the Soviet Influence in the 1950s: China's 156 Major Industrial Projects," GLO Discussion Paper Series 932, Global Labor Organization (GLO).
    12. Alvarez-Cuadrado, Francisco & Pintea, Mihaela I., 2009. "A quantitative exploration of the Golden Age of European growth," Journal of Economic Dynamics and Control, Elsevier, vol. 33(7), pages 1437-1450, July.
    13. Mehmet Halis OZER, 2014. "The Effects of the Marshall Plan Aids to the Development of the Agricultural Sector in Turkey, the 1948-1953 Period," International Journal of Economics and Financial Issues, Econjournals, vol. 4(2), pages 427-439.
    14. Hu, Zhi-An & Li, Jinghong & Nie, Zhuo, 2023. "Long Live friendship? The long-term impact of Soviet aid on Sino-Russian trade," Journal of Development Economics, Elsevier, vol. 164(C).
    15. 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.
    16. Crafts, Nicholas, 2011. "The Marshall Plan: A Reality Check," CAGE Online Working Paper Series 49, Competitive Advantage in the Global Economy (CAGE).
    17. Crafts, Nicholas, 2000. "Development history," Economic History Working Papers 22384, London School of Economics and Political Science, Department of Economic History.
    18. Nicholas Crafts & Marco Magnani, 2011. "The Golden Age and the Second Globalization in Italy," Quaderni di storia economica (Economic History Working Papers) 17, Bank of Italy, Economic Research and International Relations Area.
    19. Regilme Salvador Santino, 2023. "United States Foreign Aid and Multilateralism Under the Trump Presidency," New Global Studies, De Gruyter, vol. 17(1), pages 45-69, April.
    20. Magnus Blomstrom & Robert E. Lipsey & Mario Zejan, 1992. "What Explains Developing Country Growth?," NBER Working Papers 4132, National Bureau of Economic Research, Inc.
    21. Albrecht Ritschl, 2005. "Der späte Fluch des Dritten Reichs: Pfadabhängigkeiten in der Entstehung der bundesdeutschen Wirtschaftsordnung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 6(2), pages 151-170, May.
    22. Michel Aglietta & Michèle Bailly & Christian de Boissieu & Jean-Michel Charpin & Jean-Paul Dessertine & Etienne Lakits & Georges Mink & Jean-Pierre Page & Jacques Sapir & Jean Pisani-Ferry, 1992. "Repenser le soutien de la communauté internationale à l'Europe de l'Est," Revue de l'OFCE, Programme National Persée, vol. 42(1), pages 199-248.
    23. Colombatto Enrico, 1992. "The Integration Of The East And The Options For The West," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 3(2-3), pages 1-16, June.
    24. Ritschl Albrecht, 1995. "Aufstieg und Niedergang der Wirtschaft der DDR: Ein Zahlenbild 1945-1989," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 36(2), pages 11-46, December.

    More about this item

    Keywords

    Eastern Europe; Foreign Aid; Marshall Plan;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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