Trade Protection, Industrial Policy, and the Shaping of Local Preferences

Eugenio Miravete and Maria Moral

No 19765, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The Spanish industrial policy prohibited automobiles imports from 1939 to 1986, when Spain joined the European Union. We document how the industrial policy spurred the development led Spain to become the 5th largest automobile manufacturer in the world. This policy limited consumer choice but also resulted in pronounced regional and national home bias favoring local brands. We estimate a rich oligopoly equilibrium model to approximate the protection equivalence of the long-lasting effect of industrial policy through changes in consumer preferences.Today, domestic automakers still enjoy an advantage equivalent to an 8.5% tariff, compared to the 10.3% import-duty into the EU.

JEL-codes: F15 L13 L52 L62 (search for similar items in EconPapers)
Date: 2024-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP19765 (application/pdf)

Related works:
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:19765

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19765

Access Statistics for this paper

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