Without coal in the age of steam and dams in the age of electricity: an explanation for the failure of Portugal to industrialize before the Second World War

• Type: Article in International Scientific Journal
• Date: 2021

Authors

Henriques, ST (Author) FEP; Sharp, P (Author) Other

Journal

Title: European Review of Economic History

Vol. 25

Pages: 85-105

ISSN: 1361-4916

Publisher: Oxford University Press

Other information

Authenticus ID: P-00V-TC1

DOI: 10.1093/ereh/heaa003

Abstract (EN): <jats:title>Abstract</jats:title> <jats:p>We provide a natural resource explanation for the divergence of the Portuguese economy relative to other European countries before the Second World War. First, we demonstrate that a lack of domestic resources meant that Portugal experienced limited and unbalanced growth during the age of steam. Imports of coal were prohibitively expensive for inland areas. Coastal areas industrialized through steam but were constrained by limited demand from the interior. Second, we show that after the First World War, when other coal-poor countries turned to hydro-power, Portugal relied on coal-based thermal-power, creating a vicious circle of high-energy prices and labor-intensive industrialization.</jats:p>

Language: English

Type (Professor's evaluation): Scientific