Economic development during the Francoist era. The industrialization of Alava

Alava is an excellent case study of industrialization during the Francoits era. All growth indicators show that the province had one of the best performances in the Spanish economy during this period. From the perspective of regional economic development, the initial aim of this paper is to reconstruct the chronology of the structural change, the sectorial specialization of Alava’s economy and the origins of invested capital. Following this, we will analyze the factors of location, emphasizing the role played by the institutions. Tax exemptions and a lower fi scal pressure were the main incentives in attracting capital investments early on. Later, these incentives were combined with an effi cient offer of cheap industrial soil. Thanks to its privileged fi scal system, between 1950 and 1965 Alava launched its own development plan, even before any national action was considered to be taken.
KEY WORDS: Industrialization, Industrial Policy, Regional Development Policy, Spain.