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

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Author Info
Tiago Neves Sequeira (Departamento de Gestão e Economia - Universidade da Beira Interior & Faculdade de Economia - Universidade Nova de Lisboa)

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

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Find related papers by JEL classification:
N10 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - General, International, or Comparative
N14 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Europe: 1913-
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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References listed on IDEAS
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  1. de la Fuente, Angel, 1995. "Catch-up, Growth and Convergence in the OECD," CEPR Discussion Papers 1274, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. Dani Rodrik, 1999. "Democracies Pay Higher Wages," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 707-738, August. [Downloadable!] (restricted)
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  4. 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. [Downloadable!] (restricted)
  5. de la Fuente, Angel & Vives, Xavier, 1997. "The Sources of Irish Growth," CEPR Discussion Papers 1756, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  7. De Long, J Bradford & Summers, Lawrence H, 1991. "Equipment Investment and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 445-502, May. [Downloadable!] (restricted)
    Other versions:
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