Capital Accumulation in the Long-Run: The Case of Spain, 1850-2000 (original) (raw)
Related papers
Long-run Estimates of Physical Capital in Spain, 1850-2000
Open Access publications from Universidad Carlos III de Madrid
In this paper, new series of Spain's capital stock and input are constructed for the last one-and-a-half centuries. Capital stock and input grew at average rates of 3.5 and 3.7 percent per year but not at a steady pace since rates accelerated dramatically during the 'Golden Age'. Two major structural changes accompanied this process. Composition of capital stock and remuneration changed gradually as the contribution of productive capital rose while that of structures declined. Spanish economy experienced capital deepening in the long-run. ...
The Sources of Long-Run Growth in Spain, 1850-2000
The Journal of Economic History, 2009
Between 1850 and 2000 Spain's real output and labor productivity grew at average rates of 2.5 and 2.1 percent. The sources of this long-run growth are investigated here for the first time. Broad capital accumulation and efficiency gains appear as complementary in Spain's long-term growth. Factor accumulation dominated long-run growth up to 1950, while total factor productivity (TFP) led thereafter and, especially, during periods of growth acceleration. The main spurts in TFP and capital coincide with the impact of the railroads (1850s-1880), the electrification (the 1920s and 1950s), and to the adoption of new vintage technology during the Golden Age.
Cliometrica
The rising trend in the capital-output ratio and the productivity slowdown have put capital back in the economist's agenda. This paper contributes to the debate by providing new estimates of net capital stock and services for Spain over the last 170 years. The net capital (wealth) stock-GDP ratio rose over time and doubled in the last half-a-century. Capital services grew fast over the long-run accelerating in the 1920s and from the mid-1950s to 2007. Until 1975 its acceleration was helped by an increase in the 'quality' of capital. Capital deepening proceeded steadily, accelerating during 1955-1985, and slowing down thereafter for expanding sectors attracted less investment-specific technological progress. Although capital consumption rose over time, the rate of depreciation fell from 1970 to 2007 as new capital goods' relative prices declined due to embodied technological change.
Proximate causes of economic growth in Spain, 1850-2000
2008
Between 1850 and 2000, Spain's real output and labor productivity grew at average rates of 2.5 and 2.1 percent. The sources of this long-run growth are investigated here for the first time. Broad capital accumulation and efficiency gains appear as complementary in Spain's long-term growth. Factor accumulation dominated long-run growth up to 1950, while total factor productivity led thereafter and, especially, during periods of growth acceleration. The main spurts in TFP and capital coincide with the impact of the railroads (1850s-80), the electrification (the 1920s and 1950s) and to the adoption of new vintage technology during the Golden Age.
Growth And Structural Change In Spain, 1850-2000
Working Papers in Economic History, 2006
Long run economic progress in modern Spain is assessed in this paper and its comparative performance placed in historical perspective. Over one and a half centuries, income per person rose 15 times. Three main phases can be established: 1850-1950, 1951-1974 and 1975-2000. The finding of growth continuity between mid-nineteenth and mid-twentieth century is at odds with the widespread view of a nineteenth century of failure and a successful twentieth century. Spain underperformed in the long run mostly due to its sluggish growth in the hundred years up to 1950. Higher destruction of human capital than of physical capital during the Spanish Civil War and its aftermath help explain her weaker post-World War II performance. Catching up took place in the late twentieth century, in which the years 1959-74 stand out. Structural change contributed significantly to growth acceleration while lack of exposition to international competition represents a recurrent element of retardation.
Accounting for Growth in Spain, 1850-2019
CEPR: Economic History (Topic), 2020
The current productivity slowdown has stimulated research on the causes of growth. We investigate here the proximate determinants of long-term growth in Spain. Over the last 170 years output per hour worked raised nearly 24-fold dominating GDP growth, while hours worked per person shrank by one-fourth and population trebled. Half of labour productivity growth resulted from capital deepening, one-third from total factor productivity, and labour quality contributed the rest. In phases of acceleration (the 1920s and 1954-85), TFP was labour productivity’s main driver complemented by capital deepening. Since Spain’s accession to the European Union (1985), labour productivity has sharply decelerated as capital deepening slowed down and TFP stagnated. Up to the Global Financial Crisis (2008) GDP growth mainly resulted from an increase in hours worked per person and, to a less extent, from sluggish labour productivity coming mostly from weak capital deepening. Institutional constraints hel...
Long-Run Economic Growth In Spain Since 1800: An International Perspective
… publications from Universidad Carlos III de …, 1993
Modern economic hislory is a vcry young subjeet in Spain and most now classicai works are les s than a quarter of century old. CL Sánchez-Albornoz (1968); Tortclla (1973); Nadal (1975); Dangc, (1976). J CL reeent atternpts by Tortella (1992) and Prados (1992). 4 Only in the Jasl years has the inlerwur pcriod captured sorne attcntion frorn economic historians. cL Martín Accña (1984); Fraile (1991).
Accounting for Spanish Economic Development 1850-2019
SSRN Electronic Journal
By conducting wedge-growth accounting, we assess the contribution of the economic forces (expressed as wedges in the equilibrium conditions of the neoclassical growth model) driving Spanish economic growth from 1850 to 2019. We find that declining investment and capital-efficiency wedges slowed down Spanish economic growth and downsized the labour share from 1850 to the First World War. The crisis of the 1930s (Great Depression and Civil War) was primarily driven by the decrease of the labour-efficiency wedge. The simultaneous increase of both efficiency wedges drove the Spanish economic miracle of the 1960s, which was preceded by a large increase in the investment wedge, resulting in a significant rise of the investment rate. From the mid-1970s, the declining capital-efficiency wedge was the primary force driving the fall of the labour share and the output growth slowdown. However, the labour wedge drove the medium-term fluctuations of output, labour, and investment.
The object of study is the dynamics of capital accumulation in Spain between 1999 and 2012, a period in which the Spanish economy has had first a system of fixed exchange rates, and then the monetary integration within the Eurozone. Investment has been largely driven by the revaluation of assets related to construction (mainly residential), which has generated a profound reshaping of the economic structure. Therefore, the relationship between investment, productivity and costs is first approached from a macroeconomic perspective, followed with an analysis of the composition by assets and sectors. Thus, it is shown that the most dynamic sectors have been those with relative low technical composition of capital, leading to absolute declines in labour productivity, as well as a price-effect that has completely distorted the reproduction of the Spanish economy.
Growth ans structural change in Spain
2006
Long run economic progress in modern Spain is assessed in this paper and its comparative performance placed in historical perspective. Over one and a half centuries, income per person rose 15 times. Three main phases can be established: 1850-1950, 1951-1974 and 1975-2000. The finding of growth continuity between mid-nineteenth and mid-twentieth century is at odds with the widespread view of a nineteenth century of failure and a successful twentieth century. Spain underperformed in the long run mostly due to its sluggish growth in the hundred years up to 1950. Higher destruction of human capital than of physical capital during the Spanish Civil War and its aftermath help explain her weaker post-World War II performance. Catching up took place in the late twentieth century, in which the years 1959-74 stand out. Structural change contributed significantly to growth acceleration while lack of exposition to international competition represents a recurrent element of retardation.