Welfare gains from imported varieties in Spain, 1988-2006

Asier Minondo () and Francisco Requena Silvente

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper investigates the welfare gains due to Spanish imports of new varieties over the period 1988-2006 using the methodology proposed by Feenstra (1994) and Broda and Weinstein (2006). After calculating the elasticities of substitution of a large number of Spanish imported products, we estimate that the total welfare gain due to imports of new varieties in Spain is equal to 1.2% of GDP in 2006 (a very conservative estimate). Next we decompose the contribution of each country to the total welfare gain. By countries, China accounts for about 12% of the total gain, almost the same as the entire EU-15. Este trabajo calcula las ganancias de bienestar generadas por la importación de nuevas variedades en España desde 1988 hasta 2006, utilizando la metodología propuesta originalmente por Feenstra (1994) y mejorada por Broda and Weinstein (2006). Después de calcular las elasticidades de substitución para más de 4500 categorías de productos importados, estimamos que la ganancia total de bienestar por importación de nuevas variedades en España equivale al 1,2% del PIB en 2006 (basado en una estimación muy conservadora). A continuación calculamos la contribución que cada país ha tenido a dicha mejora de bienestar: China acumula el 12% de la ganancia total, casi el mismo porcentaje que el conjunto de la UE-15.

Keywords: welfare gains from trade; trade in variety; Spain. (search for similar items in EconPapers)
JEL-codes: F12 F14 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-11
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:2010-12

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