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Trade Liberalization and Industrial Structure in Spain: An Applied General Equilibrium Analysis

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  • Roland-Holst, David W
  • Polo, Clemente
  • Sancho, Ferran

Abstract

We empirically evaluate the aggregate welfare effects and structural adjustment for the Spanish economy that would follow from trade liberalization with the European Economic Community. Recent theory suggests that the classical gains form more liberal trade relations could be amplified substantially if EEC liberalization permits Spanish industries to realize economies of scale. These effects depend upon the extent of trade creation and trade diversion resulting from preferential liberalization, which in turn depend on the existing patterns of Spanish resource allocation, trade, and comparative advantage. The estimated results are derived from disaggregate microeconomic model of the Spanish economy. We find that increasing returns can actually be beneficial or detrimental, depending upon the interactions between trade and policy toward domestic industry.

Suggested Citation

  • Roland-Holst, David W & Polo, Clemente & Sancho, Ferran, 1995. "Trade Liberalization and Industrial Structure in Spain: An Applied General Equilibrium Analysis," Empirical Economics, Springer, vol. 20(1), pages 1-18.
    • Handle: RePEc:spr:empeco:v:20:y:1995:i:1:p:1-18
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    Citations

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    Cited by:

    1. Taran Fæhn, 1997. "Non-Tariff Barriers - the Achilles' Heel of Trade Policy Analyses," Discussion Papers 195, Statistics Norway, Research Department.
    2. Peterson, Everett B. & Lee, Huey-Lin, 2005. "Incorporating Domestic Margins into the GTAP-E Model: Implications for Energy Taxation," Conference papers 331408, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. María Montero-Muñoz, 2000. "Estructura demográfica y sistemas de pensiones," Investigaciones Economicas, Fundación SEPI, vol. 24(2), pages 297-327, May.
    4. M. Carmen Lima & M. Alejandro Cardenete, 2005. "Impact Assessment of European Structural Funds in Andalusia - a CGE Approach," ERSA conference papers ersa05p154, European Regional Science Association.
    5. Cardenete Flores, M.A & Llop Llop, M., 2005. "Modelos multisectoriales de equilibrio general aplicado en España: Una revisión/Multisectorial Applied General Equilibrium Models in Spain: a Review," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 23, pages 385-404, Agosto.
    6. Antonio Gómez Gómez-Plana, "undated". "Simulación De Políticas Económicas: Los Modelos De Equilibrio General Aplicado," Working Papers 35-02 Classification-JEL , Instituto de Estudios Fiscales.
    7. Barbara M Roberts & Jeffery I Round, "undated". "Import Demand Specification in Computable General Equilibrium Models of Economies in Transition," Discussion Papers in European Economics 99/4, Division of Economics, School of Business, University of Leicester.
    8. María Montero, "undated". "Estructura demográfica y sistema de pensiones. Un análisis de equilibrio general aplicado a la economía espanola," Studies on the Spanish Economy 16, FEDEA.
    9. Zhenshan Yang & Xunhaoyue Zeng, 2019. "Envisioning the Impact of the Belt and Road Initiative on Regional Labor Markets," Sustainability, MDPI, vol. 11(8), pages 1-17, April.

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