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The Spanish 1898 disaster: the drift towards national-protectionism

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  • Pedro Balbín

    ()

  • Álvaro Escribano Saéz

    ()

Abstract

An econometric analysis of Spanish aggregate and sectoral data reveals that the loss of the last colonial possessions in 1898 was not, in fact an economic disaster of the catastrophic proportions sorne traditional historians had held. Both at the aggregate level and in the sectors most directly involved in the colonial trade, the events of 1898 were not a specially relevant watershed. However, the nationalistic sentiment, and the climate of public opinion created by the defeat in the 1898 Spanish-American War induced a favorable institutional framework for the adoption of autarkic measures, especially high tariffs. This produced in subsequent years a progressive separation of the Spanish economy from international markets. This indirect and institutional effect, rather than the direct loss from the war itself, was the real economic disaster of 1898.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number wh980301.

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Date of creation: Jan 1998
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Handle: RePEc:cte:whrepe:wh980301

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Keywords: Colonial trade; Colonialism; Economic nationalism; Autarky; Tariffs; Lobbies;

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Cited by:
  1. Antonio Tena Junguito, 2006. "Tariff History Lessons from the European Periphery. Protection Intensity and the Infant Industry Argument in Spain and Italy 1870-1930," Working Papers in Economic History, Universidad Carlos III, Departamento de Historia Económica e Instituciones wp06-08, Universidad Carlos III, Departamento de Historia Económica e Instituciones.

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