IDEAS home Printed from
   My bibliography  Save this paper

Competitiveness and the Kaldor Paradox: The case of Spanish Service Sector


  • Andrés Maroto Sanchez
  • Luis Rubalcaba Bermejo


In the current wave of service globalisation, a new dynamic explaining international trade in services emerges. Some services are following similar trends to the ones initiated by manufacturing industries some decades ago. In this context, costs factors, the ones leading the major part of the current global sourcing in services, could gain importance in global services competition. Services could behave more similarly to goods and the Kaldor paradox may potentially be less remarkable that some years ago, in a context where the achievement of the EMU perform in the opposite way. As a particular empirical case study, empirical analysis of trade market shares in relation to effective real exchange rate is carried out for the Spanish case. Results shows that the Kaldor paradox continues having a strong importance in Spanish trade, although not all the service sectors have the same price/costs sensibility. Recent trends also present uneven results depending on the service sector, but in general there are not signs of decreasing the role of non-price/cost factors in international trade (in particular business services), although many services continue to be slightly more sensitive to relative prices than other industries.

Suggested Citation

  • Andrés Maroto Sanchez & Luis Rubalcaba Bermejo, 2006. "Competitiveness and the Kaldor Paradox: The case of Spanish Service Sector," Working Papers 06/06, Instituto Universitario de Análisis Económico y Social.
  • Handle: RePEc:uae:wpaper:0606

    Download full text from publisher

    File URL:
    File Function: First version, 2006
    Download Restriction: no

    References listed on IDEAS

    1. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 39-51, Autumn.
    2. Uhlig, H.F.H.V.S. & Ravn, M., 1997. "On Adjusting the H-P Filter for the Frequency of Observations," Discussion Paper 1997-50, Tilburg University, Center for Economic Research.
    3. L. Rubalcaba & D. Gago, 2001. "Relationships between Services and Competitiveness: The Case of Spanish Trade," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 35-62, January.
    4. William Milberg & Ellen Houston, 2005. "The high road and the low road to international competitiveness: Extending the neo-Schumpeterian trade model beyond technology," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(2), pages 137-162.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Martin Gächter & Hanno Lorenz & Paul Ramskogler & Maria Antoinette Silgoner, 2013. "An Export-Based Measure of Competitiveness," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 75-92.


    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:uae:wpaper:0606. 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: (Laura Suarez). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.