View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Repositorio Institucional Universidad de Málaga The Economic Consequences of the Spanish Reconquest: The Long-term Effects of Medieval Conquest and Colonization DANIEL OTO-PERALÍAS AND DIEGO ROMERO-ÁVILA Pablo de Olavide University This version: December 2014 Abstract This paper shows that a historical process that ended more than five centuries ago, the Reconquest, is very important to explain Spanish regional economic development down to the present day. An indicator measuring the rate of Reconquest reveals a heavily negative effect on current income differences across the Spanish provinces. A main intervening factor in the impact the Reconquest has had is the concentration of economic and political power in a few hands, excluding large segments of the population from access to economic opportunities when Spain entered the industrialization phase. The timing of the effect is consistent with this argument. A general implication of our analysis is that large frontier expansions may favor a political equilibrium among the colonizing agents that is biased toward the elite, creating the conditions for an inegalitarian society, with negative consequences for long-term economic development. Keywords: Economic Development, Political Power, Economic inequality, Spanish Reconquest, History JEL Classification: C21, N2, O1 ----------------------------------------------------- Corresponding Author: Diego Romero-Ávila, Pablo de Olavide University, Department of Economics, Carretera de Utrera, Km. 1, Sevilla, Spain. E-mail:
[email protected]. Tel. (+34) 954 348 381. Fax: (+34) 954 349 339. Daniel Oto-Peralías, Pablo de Olavide University, Department of Economics, Carretera de Utrera, Km. 1, Sevilla, Spain.