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A quantitative exploration of the Golden Age of European growth

  • Alvarez-Cuadrado, Francisco
  • Pintea, Mihaela I.

Income per capita in some Western European countries more than tripled in the two and a half decades that followed World War II. The literature has identified several factors behind this outstanding growth episode, specifically; structural change, the Marshall Plan combined with the public provision of infrastructure, the surge of intra-European trade, and the reconstruction process that followed the war. This paper is an attempt to formalize and quantify the contribution of each one of these factors to post-war growth. Our results highlight the importance of reconstruction growth and structural change, and point to the limited role of the Marshall Plan, and the late contribution of intra-European trade.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 33 (2009)
Issue (Month): 7 (July)
Pages: 1437-1450

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Handle: RePEc:eee:dyncon:v:33:y:2009:i:7:p:1437-1450
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