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A Model of Later Nineteenth Century European Economic Development

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  • Foreman-Peck, James

Abstract

A model is developed and estimated to explain why some European countries were richer than others between 1860 and 1910 and why some increased dieir prosperity faster in the period. The model quantifies by two methods some of the contributors to the income gap between the economies of Spain and Britain in 1880 and 1910. Determinants of European nations' output per head included natural endowments (climate and coal deposits), economic policy (tariff protection and very marginally the gold standard), and cultural heritage as reflected in literacy. Measurement errors, country specific factors and perhaps variables not considered in this analysis account for less than half Spanish-UK income differences at the dates estimated.

Suggested Citation

  • Foreman-Peck, James, 1995. "A Model of Later Nineteenth Century European Economic Development," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 13(3), pages 441-471, December.
  • Handle: RePEc:cup:reveco:v:13:y:1995:i:03:p:441-471_00
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    Cited by:

    1. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    2. Louri, Helen & Pepelasis Minoglou, Ioanna, 2002. "A hesitant evolution: industrialisation and de-industrialisation in Greece over the long run," MPRA Paper 29275, University Library of Munich, Germany.
    3. Jakob B. Madsen, 2009. "Trade Barriers, Openness, and Economic Growth," Southern Economic Journal, John Wiley & Sons, vol. 76(2), pages 397-418, October.

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