Resumen
While much attention has been put on the criteria underlying the allocation of public
investment before and after the Francoist dictatorship in Spain, no research has been
conducted for this specific period. We study whether the allocation of public investment
was driven by economic or non-economic incentives during the Francoist dictatorship in
Spain. Our analysis consists of a two-step methodology that combines theory with an
empirical model. Using a sample of 50 Spanish provinces for the period 1940-1975, we
find that economic incentives coexist with non-economic incentives, which are mainly
intended to avoid social conflict. These results are consistent with the theoretical model
and hold when assuming spatial patterns derived from the influence of neighboring
regions.
Was the allocation of public investment ideologically motivated? Evidence from
the Francoist dictatorship in Spain (1939-1975)