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A Quantitative Exploration of the Golden Age of European Growth

  • Francisco Alvarez-Cuadrado

    ()

    (Department of Economics, McGill University)

  • Mihaela I. Pintea

    ()

    (Department of Economics, Florida International University)

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 associated with large migrations from agriculture to nonagricultural sectors, the Marshall Plan combined with the public provision of infrastructure, the surge of intra-European trade, and the reconstruction process that followed the devastation of the war. This paper is an attempt to formalize and quantify the direct contribution of each one of these factors to growth during the European Golden Age. 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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File URL: http://casgroup.fiu.edu/pages/docs/2249/1275227712_08-05.pdf
File Function: First version, 2008
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Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0805.

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Length: 29 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:fiu:wpaper:0805
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Web page: http://casgroup.fiu.edu/Economics/
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