Spanish emigrant remittances and their impact on public finances, 1870-1936

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.