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

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  • Tiago Neves Sequeira

    (Departamento de Gestão e Economia - Universidade da Beira Interior & Faculdade de Economia - Universidade Nova de Lisboa)

Abstract

The years following the Second World War were those of the greatest economic growth that Europe had ever seen. 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 down 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 middle eighties.

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File URL: http://128.118.178.162/eps/eh/papers/0309/0309002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Economic History with number 0309002.

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Length: 30 pages
Date of creation: 30 Sep 2003
Date of revision:
Handle: RePEc:wpa:wuwpeh:0309002

Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on HP/PostScript/Franciscan monk; pages: 30 ; figures: included
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Web page: http://128.118.178.162

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

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  1. Feinstein, Charles H. & Temin, Peter & Toniolo, Gianni, 1997. "The European Economy Between the Wars," OUP Catalogue, Oxford University Press, number 9780198774815, September.
  2. Dani Rodrik, 1999. "Democracies Pay Higher Wages," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 707-738, August.
  3. 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.
  4. J. Bradford De Long & Lawrence H. Summers, 1990. "Equipment Investment and Economic Growth," NBER Working Papers 3515, National Bureau of Economic Research, Inc.
  5. de la Fuente, Angel & Vives, Xavier, 1997. "The Sources of Irish Growth," CEPR Discussion Papers 1756, C.E.P.R. Discussion Papers.
  6. 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.
  7. Gianni Toniolo, 1998. "Europe’s Golden Age, 1950-1973: Speculations from a Long-run Perspective," Economic History Review, Economic History Society, vol. 51(2), pages 252-267, 05.
  8. de la Fuente, A., 1995. "Catch-up, Growth and Convergence in the OECD," UFAE and IAE Working Papers 314.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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