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The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000

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  • Oscar Bajo-Rubio

    (Universidad de Castilla-La Mancha)

Abstract

The balance of payments can act as a constraint to the rate of growth of output, on setting a limit to the growth of the level of demand to which supply can adapt. In this paper, we examine this issue for the case of Spain, using time series data extending over one-and-a-half century, i.e., the period 1850-2000. Our results show that the foreign sector would have worked as a constraint to growth only during some periods of remarkably high growth in comparison with the Western European average, such as 1914-1935, and, especially, 1950-1975.

Suggested Citation

  • Oscar Bajo-Rubio, 2010. "The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000," Working Papers 10-10, Asociación Española de Economía y Finanzas Internacionales.
    • Handle: RePEc:aee:wpaper:1010
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    Cited by:

    1. Bajo-Rubio, Oscar & Esteve, Vicente, 2021. "The Current Account Of The Spanish Economy, 1850-2016: Was It Optimal?," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 39(2), pages 329-354, September.
    2. Oscar Bajo-Rubio, 2022. "Exports and long-run growth: The case of Spain, 1850-2020," Journal of Applied Economics, Taylor & Francis Journals, vol. 25(1), pages 1314-1337, December.
    3. Oscar Bajo-Rubio & Carmen Díaz-Roldán, 2015. "Economic Growth and the Balance-of-Payments Constraint: The Case of the Spanish Regions, 1988–2009," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 617-628, December.
    4. Bajo-Rubio, Oscar & Ramos-Herrera, María del Carmen, 2023. "Does international trade promote economic growth? Europe, 19th and 20th centuries," GLO Discussion Paper Series 1358, Global Labor Organization (GLO).
    5. Prados de la Escosura, Leandro, 2009. "Spain's International Position, 1850-1913," CEPR Discussion Papers 7591, C.E.P.R. Discussion Papers.
    6. Mohammed Al- Mahish, 2017. "Does Balance of Payments Constrained Growth Model Hold in Saudi Arabia?," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 1-15, March.

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    More about this item

    Keywords

    Economic growth; External deficit; Spanish economy.;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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