Autarkic Policy and Efficiency in the Spanish Industrial Sector. An Estimate of Domestic Resource Cost in 1958

The impact of Francoist autarkic economic policy on Spain's economy is assessed using 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 added value at international prices. 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. Only 50 out of 125 industries or, in other words, 39 per cent of 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 most industrial production was on the verge of relative efficiency.