American Military Interests and Economic Confidence in Spain under the Franco Dictatorship

Abstract

The security of property rights is fragile under dictatorships. This is particularly so if economic agents are uncertain as to whether the regime will last. As a result, private investment is withheld and economic performance is poor. Spain was in such a situation after World War II. However, as the Cold War intensified the United States became interested in Spain as a military ally, thereby helping to consolidate Franco's regime. This led to an increase in economic confidence and helps to explain why economic growth resumed in Spain ahead of significant changes in its autarkic economic policies.

Event studies: A methodology review

“…Schwert (1981) is an early example. A parsimonious, recent sampling of papers in various areas where event studies are now applied might include Ghosh et al (1995), Meznar et al (1998), Lamdin (2001), McKenzie and Thomsen (2001), Bhagat and Romano (2002), Chatterjee et al (2002), Nicolau (2002), Rose (2003), Thomsen and McKenzie (2001), Drakos (2004), Nicolau and Sellers (2002), Wulf (2004), Tuck (2005), Cichello and Lamdin (2006), Fornell et al (2006), Calvo-Gonzalez (2007), Johnston (2007), Darkow et al (2008), Gong (2009), Misra and Rao (2009), and Roztocki and Weistroffer (2009). There are, of course, many others too numerous to mention here.…”

Skogsbeitets konge, 100% naturlig og mennesketsrespektfulle hånd

“…multinasjonale fôrprodusenter med hovedsete i USA var de viktigste pådriverne for veksten i kjøttproduksjonen. Forløperen for den rollen de skulle spille, var den såkalte Madridpakten, undertegnet i 1953, hvor USA forpliktet seg til å støtte Spania økonomisk og militaert mot å få etablere militaere flyplasser og marinebaser på spansk territorium (Calvo-Gonzalez, 2007). Avtalen omfattet import av overskuddsavlinger fra jordbruket i USA, og USA forsynte fjaerkreoppdrettere med soyabønner og svineoppdretterne med maiskorn (Clar, 2010).…”

Economic reforms and growth in Franco's Spain,

“…This economic policy provided, in turn, an advantageous position to those small groups and coalitions which, in exchange for support to the dictatorship, would derive rents from the public sector and even control the state's economic decisions (Fraile Balbín 1999). To make the economic situation even worse, economic agents were uncertain about how long the regime would last (Calvo-González 2001, 2007a).…”