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The "Iberian Tigers" versus The "Celtic Tiger": Economic Growth Paths in an Economic History perspective

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  • Sequeira, Tiago Neves

Abstract

The years following the Second World War are those of greatest economic growth in Europe. If the countries of the Iberian Peninsula, neutral in the conflict and ruled by dictatorial regimes, enjoyed that growth and had participated in the convergence phenomenon, Ireland, also neutral but democratic, was not able to converge to the developed world. Since 1973, with petroleum crashes, the process of growth has slowed in Europe, but it was only after 1985 that Ireland began to grow at impressive rates. We review, in an economic history perspective, the implications of the institutional environment and the economic policy decisions. We also address the consequences and plausible explanations for the different growth paths of those countries and revisit the puzzle of slow Irish growth until the middle eighties.

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Paper provided by Universidade Nova de Lisboa, Faculdade de Economia in its series FEUNL Working Paper Series with number wp416.

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Length: 30 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:unl:unlfep:wp416

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Keywords: Second World War; Economic Growth; Convergence; Periphery; Europe; Ireland; Portugal; Spain.;

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  1. Dani Rodrik, 1998. "Democracies Pay Higher Wages," NBER Working Papers 6364, National Bureau of Economic Research, Inc.
  2. J. Bradford De Long & Lawrence H. Summers, . "Equipment Investment and Economic Growth," J. Bradford De Long's Working Papers _122, University of California at Berkeley, Economics Department.
  3. de la Fuente, Angel & Vives, Xavier, 1997. "The Sources of Irish Growth," CEPR Discussion Papers 1756, C.E.P.R. Discussion Papers.
  4. de la Fuente, Angel, 1995. "Catch-up, Growth and Convergence in the OECD," CEPR Discussion Papers 1274, C.E.P.R. Discussion Papers.
  5. Feinstein, Charles H. & Temin, Peter & Toniolo, Gianni, 1997. "The European Economy Between the Wars," OUP Catalogue, Oxford University Press, number 9780198774815.
  6. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  7. Walsh, Brendan, 1993. "The Contribution of Human Capital Formation to Post-War Economic Growth in Ireland," CEPR Discussion Papers 819, C.E.P.R. Discussion Papers.
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