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Economic Reforms and Growth in Franco’s Spain

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  • Prados de la Escosura, Leandro
  • Rosés, Joan R.
  • Sanz Villarroya, Isabel

Abstract

This paper is an attempt at assessing the economic impact of market-oriented reforms undertaken during General Franco’s dictatorship, in particular, the 1959 Stabilization and Liberalization Plan. Using an index of macroeconomic distortions (IMD) the relationship between economic policies and the growth record is examined. Although a gradual reduction in macroeconomic distortions was already in motion during the 1950s, the 1959 Plan opened the way to a new institutional design that favoured a free-market allocation of resources and allowed Spain to accelerate growth and catch up with Western Europe. Without the 1950s reforms and, especially, the 1959 Plan, per capita GDP would have been significantly lower in 1975

Suggested Citation

  • Prados de la Escosura, Leandro & Rosés, Joan R. & Sanz Villarroya, Isabel, 2011. "Economic Reforms and Growth in Franco’s Spain," IFCS - Working Papers in Economic History.WH wp11-07, Universidad Carlos III de Madrid. Instituto Figuerola.
    • Handle: RePEc:cte:whrepe:wp11-07
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    4. Alessandro Melcarne & Juan S. Mora-Sanguinetti & Rok Spruk, 2021. "Democracy, technocracy and economic growth: evidence from 20 century Spain," Working Papers 2118, Banco de España.
    5. Congregado, Emilio & Esteve, Vicente, 2022. "Cointegration with structural changes and classical model of inflation in Spain, 1830–1998," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 376-388.
    6. Tancredi Buscemi, 2026. "No revenge of the places that don't matter? Evidence from Italy’s Cassa per il Mezzogiorno," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 20(1), pages 185-220, January.
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    8. Amaral, Luciano & Marques, Bruno Lopes & Pereira dos Santos, João, 2026. "The Carnation Revolution and economic crisis: A synthetic control analysis (1974-2000)," European Journal of Political Economy, Elsevier, vol. 93(C).
    9. Kamath, Ram Mohan Sasikumar, 2024. "A complex adaptive system perspective of the green-restructuring of clusters," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 102, number 307589.
    10. Monteforte, Fabio, 2020. "Structural change, the push-pull hypothesis and the Spanish labour market," Economic Modelling, Elsevier, vol. 86(C), pages 148-169.
    11. Miguel Martín-Retortillo & Vicente Pinilla, 2013. "Patterns and causes of growth of European agricultural production, 1950-2005," Documentos de Trabajo (DT-AEHE) 1302, Asociación Española de Historia Económica.
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    Keywords

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    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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