The quantitative and comparative analysis of Spanish and Portuguese cork exportations during the 20th century shows that Spain lost its leading position in the world trade of transformed cork while Portugal rose to claim first place. This article takes a step towards identifying the institutional aspects behind the different paths taken by the cork business in the two countries between 1930 and 1975. Starting with a comparative analysis of the legal framework and economic policies which had an impact on the various branches of business during the two Iberian dictatorships, it is argued that Salazar and Franco attributed different degrees of importance to the cork sector. It concludes that these institutional aspects explain a part of the loss of competitiveness of Spanish exports in comparison with Portuguese exports, insofar as they influenced the extent to which the two economies participated in international trade flows as well as production costs in the industry.
