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The Great Depression in Spain

Author

Listed:
  • Eduardo L. Giménez
  • María Montero

    () (Universidade de Vigo)

Abstract

In the decade of the 1930s the Spanish economy reported an slowdown of 20%, less severe than what occurred in the US, France and Germany, but very similar to the Italian and British experiences. In this paper we study two issues concerning this period of the Spanish economy: Did the World Depression account for the slump in the Spanish economy? And, why did the Spanish economy (unlike others) still show no signs of recovery at the onset of the Spanish Civil War (1936-1939)? We find that TFP accounts for most of the slowdown throughout this period, and the terms of trade explain the evolution of foreign trade. These findings suggest that (i) the origin of the Spanish downturn had a domestic source (with a drop in GDP, investment and imports); (ii) the external economic and political situation affected the Spanish economy with some delay (with a drop in foreign trade and investment); and, (iii) the socio-political situation delineated the recovery pattern.

Suggested Citation

  • Eduardo L. Giménez & María Montero, 2012. "The Great Depression in Spain," Documentos de trabajo - Analise Economica 0048, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  • Handle: RePEc:edg:anecon:0048
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    References listed on IDEAS

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    More about this item

    Keywords

    The Great Depression; Spanish economy; Foreign Trade.;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • 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-

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