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The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000

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  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha)

Abstract

The balance of payments can act as a constraint to the rate of growth of output, on setting a limit to the growth of the level of demand to which supply can adapt. In this paper, we examine this issue for the case of Spain, using time series data extending over one-and-a-half century, i.e., the period 1850-2000. Our results show that the foreign sector would have worked as a constraint to growth only during some periods of remarkably high growth in comparison with the Western European average, such as 1914-1935, and, especially, 1950-1975.

Suggested Citation

  • Oscar Bajo-Rubio, 2010. "The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000," Working Papers 10-10, Asociación Española de Economía y Finanzas Internacionales.
  • Handle: RePEc:aee:wpaper:1010
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    Cited by:

    1. Oscar Bajo-Rubio & Carmen Díaz-Roldán, 2015. "Economic Growth and the Balance-of-Payments Constraint: The Case of the Spanish Regions, 1988–2009," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 617-628, December.
    2. Mohammed Al- Mahish, 2017. "Does Balance of Payments Constrained Growth Model Hold in Saudi Arabia?," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 1-15, March.
    3. Bajo-Rubio, Oscar, 2020. "Exports and long-run growth: The case of Spain, 1850-2017," GLO Discussion Paper Series 461, Global Labor Organization (GLO).
    4. Prados de la Escosura, Leandro, 2009. "Spain's International Position, 1850-1913," CEPR Discussion Papers 7591, C.E.P.R. Discussion Papers.
    5. Oscar Bajo-Rubio & Vicente Esteve, 2017. "Optimality of the current account of the Spanish economy, 1850-2015," Working Papers 1710, Department of Applied Economics II, Universidad de Valencia.

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    More about this item

    Keywords

    Economic growth; External deficit; Spanish economy.;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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