EconPapers    
Economics at your fingertips  
 

Growing like Spain: 1995-2007

Manuel Garcia-Santana (), Enrique Moral-Benito (), Josep Pijoan-Mas () and Roberto Ramos ()

No 11144, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Spanish GDP grew at an average rate of 3.5% per year during the expansion of 1995-2007, well above the EU average of 2.2%. However, this growth was based on factor accumulation rather than productivity gains as TFP fell at an annual rate of 0.7%. Using firm-level administrative data for all sectors we show that deterioration in the allocative efficiency of productive factors across firms was at the root of the low TFP growth in Spain, while misallocation across sectors played only a minor role. Cross-industry variation reveals that the increase in misallocation was more severe in sectors where government influence is more important for business success, which represents novel evidence on the potential macroeconomic costs of crony capitalism. In contrast, sectoral differences in financial dependence, skill intensity, innovative content, tradability, or capital structures intensity appear to be unrelated to changes in allocative efficiency. All in all, the observed high output growth together with increasing firm-level misallocation in all sectors is consistent with an expansion driven by a demand boom rather than by structural reforms.

Keywords: Misallocation; Spain; TFP (search for similar items in EconPapers)
JEL-codes: D24 O11 O47 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-bec, nep-eec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=11144 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: GROWING LIKE SPAIN: 1995–2007 (2020) Downloads
Working Paper: Growing like Spain: 1995-2007 (2016) Downloads
Working Paper: Growing like Spain: 1995-2007 (2016) Downloads
Working Paper: Growing like Spain: 1995-2007 (2016) Downloads
Working Paper: Growing like Spain: 1995-2007 (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11144

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11144

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2021-10-20
Handle: RePEc:cpr:ceprdp:11144