Autarkic policy and efficiency in the Spanish industrial sector. An estimate of domestic resource cost in 1958
The 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.
|Date of creation:||Aug 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +44 (0) 20 7955 7084
Web page: http://www.lse.ac.uk/economicHistory/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Banerji, Ranadev & Donges, Juergen B., 1974. "The domestic resource cost concept: Theory and an empirical application to the case of Spain," Kiel Working Papers 24, Kiel Institute for the World Economy.
- Krueger, Anne O, 1972. "Evaluating Restrictionist Trade Regimes: Theory and Measurement," Journal of Political Economy, University of Chicago Press, vol. 80(1), pages 48-62, Jan.-Feb..
- Sebastian Edwards, 1997.
"Openness, Productivity and Growth: What Do We Really Know?,"
NBER Working Papers
5978, National Bureau of Economic Research, Inc.
- Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-98, March.
- Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
- Schydlowsky, Daniel M., 1984. "A policymaker's guide to comparative advantage," World Development, Elsevier, vol. 12(4), pages 439-449, April.
- Hare, Paul G & Hughes, Gordon, 1992.
"Industrial Policy and Restructuring in Eastern Europe,"
CEPR Discussion Papers
653, C.E.P.R. Discussion Papers.
- Hughes, Gordon & Hare, Paul G, 1992. "Industrial Policy and Restructuring in Eastern Europe," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 82-104, Spring.
- Fane, George, 1995. "The Average and Marginal Domestic Resource Cost of Foreign Exchange," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 663-75, October.
- Pearson, Scott R. & Akrasanee, Narongchai & Nelson, Gerald C., 1976. "Comparative Advantage in Rice Production: A Methodological Introduction," Food Research Institute Studies, Stanford University, Food Research Institute, issue 02.
- Pons, Maria A., 1999. "Capture or agreement? Why Spanish banking was regulated under the Franco regime, 1939–75," Financial History Review, Cambridge University Press, vol. 6(01), pages 25-46, April.
When requesting a correction, please mention this item's handle: RePEc:ehl:wpaper:22352. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LSERO Manager on behalf of EH Dept.)
If references are entirely missing, you can add them using this form.