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Growth in a Protected Environment: Portugal, 1850–1950

In: Research in Economic History

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  • Pedro Lains

Abstract

From 1850 to 1913, the Portuguese economy expanded slowly and diverged from the European core. In contrast, during the interwar period, Portugal achieved higher growth and partially caught up to the levels of labor productivity of Western Europe. Higher growth in Portugal after World War I occurred in a framework of protection and increasing levels of state intervention. Growth was due to structural changes that favored sectors with higher levels of factor productivity. Such changes were associated with growth in domestic demand and higher levels of investment, and were helped by sustained export levels, the continuation of essential imports, and the restoration of capital inflows.

Suggested Citation

  • Pedro Lains, 2006. "Growth in a Protected Environment: Portugal, 1850–1950," Research in Economic History, in: Research in Economic History, pages 119-160, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rehizz:s0363-3268(06)24004-7
    DOI: 10.1016/S0363-3268(06)24004-7
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