Real Wages and Relative Facctor Prices in the Third World 1820-1940: the Mediterranean Basin
By 1914, there were very big economic gaps between the European industrial core and countries around the Mediterranean Basin. When did the gaps appear? Can they be explained by lags in the diffusion of the industrial revolution after 1770, or did the gaps appear much earlier? What about the first great globalization boom after about 1870? Which countries in the Mediterranean Basin started catching up, which fell further behind, and which held their own? What role did globalization and demographic forces play? Conventional quantitative evidence, like Agnus Maddison's GDP data, is often too incomplete to confront these central questions. In an effort to suggest a new research agenda for the region, this essay uses a new data base on real wages and relative factor prices for six of the major regions around the basin -- Portugal, Spain, Italy (North and South), the Balkans, Turkey and Egypt.
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