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

  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha)

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.

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Paper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 10-10.

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Length: 23 pages
Date of creation: Dec 2010
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Handle: RePEc:aee:wpaper:1010
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