Spanish Emigrant Remittances and their Impact on Public Finances, 1870–1936

Описание: This video condenses key findings from the paper: "Spanish Emigrant Remittances and their Impact on Public Finances, 1870–1936".

Spanish emigrants sending money from the Americas provided a critical financial flow to Spain. The study uses a Vector Error Correction Model to analyse the effects of remittances on taxation and public spending.

🔬 Key Findings in Brief:
Direct Tax Boost: Remittances significantly bolstered Direct Tax revenues in the long term due to wealth accumulation and investments by returning emigrants ("Indianos").
Crowding-Out: Evidence suggests a short-term 'crowding-out' effect on Government Spending, implying private remittances substituted for state welfare and intervention.
Weak Fiscal System: The impact on Indirect Taxes was limited. This is attributed to Spain's underdeveloped fiscal system and reliance on the informal economy.
Investment Channel: The main economic effect was through Gross Fixed Capital Formation (GFCF) (land/business investment), consistent with the 'Indiano' profile.

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👩‍🏫 About the Author and the Paper:
Ángel Muñiz-Mejuto: Universidad Carlos III de Madrid & Universidad Europea de Madrid.
Original Title: Spanish Emigrant Remittances and their Impact on Public Finances, 1870–1936.
Journal: Revista de Historia Industrial - Industrial History Review
JEL Codes: H24, F22, F24, N23.

#remittances #economichistory #emigration #indianos #taxation #spainhistory #spain #economics