Spanish emigrant remittances and their impact on public finances, 1870-1936; [Les remeses dels emigrants espanyols i el seu impacte en les finances públiques, 1870-1936]; [Las remesas de los emigrantes españoles y su impacto en las finanzas públicas, 1870-1936]

Paper Details

Authors: MUÑIZ-MEJUTO Á.

DOI: 10.1344/rhi-ihr.48083

Journal: Revista de Historia Industrial

Year: 2026

Publisher: Department of Economic History and Institutions, Policy and World Economy

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 1

Abstract

This paper examines the impact of remittances from Spanish emigrants in the Americas on Spain's public finances between 1870 and 1936. Using a newly reconstructed remittance series, it analyses whether these inflows contributed to tax revenue and public expenditure in real terms. A Vector Error Correction Model is employed to assess both short- and long-term effects on fiscal variables, distinguishing between direct and indirect taxation. The findings suggest that remittances bolstered direct tax revenues, particularly through wealth accumulation and investment. At the same time, their impact on the purchasing power of indirect taxation was limited due to Spain's underdeveloped fiscal system and informal economy. Additionally, evidence of a short-term crowding-out effect on public spending is found, aligning with recent literature on remittances substituting for state intervention. These insights contribute to broader discussions on the historical role of remittances in state capacity and fiscal development. © Revista de Historia Industrial – Industrial History Review, 2026.

Keywords

emigration; remittances; Spain; tax revenue

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