Working Paper: CEPR ID: DP163
Authors: Jorge Braga de Macedo
Abstract: This paper considers the Portuguese transition towards full membership of the European Community in the light of the conflicts between domestic political objectives and the process of economic integration and liberalization. The paper studies two "integration episodes", the development of an economic union between Portugal and its African colonies and the establishment of democratic socialism since then. The paper contrasts the recent economic experience of Portugal with its neighbour Spain. The view that EC membership is desirable because it ensures Portugal against dictatorship is also examined and criticized. The paper concludes by examining the lessons of the postwar experience for the latest integration episode, Portugal's transition to full EC membership.
Keywords: Portugal; European Community; Economic Integration; Liberalization
JEL Codes: 420; 432
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Politicization of resource allocation mechanisms (D72) | Negative economic consequences for Portugal (F69) |
| Establishment of democratic socialism (P31) | Negative economic consequences for Portugal (F69) |
| Inversely correlated macroeconomic performance with the rest of Europe (N14) | Negative economic consequences for Portugal (F69) |
| Transition to socialism (P39) | Transformation of national pride into state pride (F52) |
| Transformation of national pride into state pride (F52) | Negative impact on economic performance (F69) |
| Lack of social consensus on economic policies (P19) | Delayed necessary structural adjustments (D25) |
| Delayed necessary structural adjustments (D25) | Delayed transition to full EC membership (F55) |