Southern european econonomic backwardness revisited: The role of open economy forces in Portugal and the Balkans, 1870–1913

Abstract

This article has two main purposes. The first is to reassess the data on levels and rates of growth of income per capita in Europe from 1870 to 1913. That reassessment confirms the existence of a distinct group of poor, non-converging countries, namely Portugal, Greece, Bulgaria, Romania and Serbia. The second purpose of this article is to discuss the role of ‘open-economy forces’ in the development of the poor European economies. Disparate experiences existed in this field. Portugal and Greece were more closed to foreign trade and capital imports, as compared to Bulgaria, Serbia and Romania. Such differences in the degree of openness are a consequence of differences in tariff levels and fiscal and monetary policies. The fact that countries with a higher degree of openness also failed to converge to the levels of income per capita of the European forerunners leads to a revaluation of the effectiveness of free-trade and balanced budgets in fostering economic growth in the poor periphery of Europe between 1870–1913.

Earlier versions of this article were presented at a seminar at Lund University and as a lecture (lição de agregação) at the Universidade Nova de Lisboa. I would like to thank participants for their comments. Thanks are also due to Nick Crafts, James Foreman-Peck, Riitta Hjerppe, Rui Ramos, Lennart Schön, Jeffrey Williamson and an anonymous referee. The usual caveat applies.

Earlier versions of this article were presented at a seminar at Lund University and as a lecture (lição de agregação) at the Universidade Nova de Lisboa. I would like to thank participants for their comments. Thanks are also due to Nick Crafts, James Foreman-Peck, Riitta Hjerppe, Rui Ramos, Lennart Schön, Jeffrey Williamson and an anonymous referee. The usual caveat applies.

Notes

Earlier versions of this article were presented at a seminar at Lund University and as a lecture (lição de agregação) at the Universidade Nova de Lisboa. I would like to thank participants for their comments. Thanks are also due to Nick Crafts, James Foreman-Peck, Riitta Hjerppe, Rui Ramos, Lennart Schön, Jeffrey Williamson and an anonymous referee. The usual caveat applies.