Autarkic policy and efficiency in the Spanish industrial sector. An estimate of domestic resource cost in 1958
AbstractThe impact that the francoist autarkic economic policy had on the Spanish economy is assessed using the Domestic Resource Cost (DRC) as an indicator. This indicator compares the real opportunity cost of the primary factors used in the production of a certain good with its aggregated value at international prices. Since the DRC provides a ranking of sectors classified according their relative efficiency, it can be interpreted as an indicator of comparative advantage. Our results indicate that the inefficient allocation of productive factors induced by the interventionist economic policy resulted in a significant loss of efficiency for the economy, such that only 50 out of 125 industries, accounting for 39 percent of the Spanish industrial production, could be considered efficient. However, the paper also shows that the Spanish economy was in a good position to take advantage of the opportunities created by the 1959 reform, as the lion’s share of industrial production was on the verge of relative efficiency.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, Department of Economic History in its series Economic History Working Papers with number 22352.
Length: 43 pages
Date of creation: Aug 2003
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Find related papers by JEL classification:
- N0 - Economic History - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- F3 - International Economics - - International Finance
- G3 - Financial Economics - - Corporate Finance and Governance
- B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
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