Examining the export-led growth hypothesis for Spain in the last century

The relationship between real income and real exports is examined for the Spanish economy in the last century (1901-1999) using annual data. The significant changes of the Spanish economy during this period have made of the analysis a mixed one. The export-led growth hypothesis is supported during the economic liberalization period whereas for the protectionist and autarkic period neither a long-run nor a short-run relationship between those two variables are found. When the century as a whole is considered, then, a unidirectional causality running from income to exports is exhibited.