IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/20525.html

The Long-Lasting Protection of a Defunct Industrial Policy

Author

Listed:
  • Miravete, Eugenio
  • Moral, Maria

Abstract

The Spanish industrial policy prohibited automobiles imports from 1939 to 1986, when Spain joined the European Union. Despite trading freely with other European countries ever since, Spaniards still show a strong preference for automobile brands with production facilities established in Spain during the autarkic period. We specify a multi-product oligopoly equilibrium model and jointly estimate demand and supply. This rich framework allows us to quantify the current tariff equivalence of these biased preferences induced by an industrial policy phased out decades ago. Our results show that domestic automakers enjoy today a sizable advantage equivalent to an 8.5% tariff, even thirty years after the industrial policy was phased out. This protection is not negligible when compared to the 10.3% import duty applied by the EU. The Spanish experience illustrates the potential benefits and pitfalls of the current European protective policy against Chinese imports.

Suggested Citation

  • Miravete, Eugenio & Moral, Maria, 2025. "The Long-Lasting Protection of a Defunct Industrial Policy," CEPR Discussion Papers 20525, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20525
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP20525
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:20525. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.