Spain's Industrial Exports to the EEC: A Panel Data Approach

Carmela Martín () and Lourdes Moreno

No 521, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper investigates the determinants of trends in Spain's industrial exports to other Community countries by using a sectoral panel data approach. Apart from overcoming the bias likely to arise from aggregate trade equations, this procedure is useful in detecting the existence of individual (sectoral) effects which, according to new Industrial Organization Trade models, seem to be crucial in explaining industrial trade patterns. Our results show that both cost and price elasticities of export demand differ widely among sectors. Additionally, they support the hypothesis about the significant influence of advertising expenditure and, to a lesser extent, technological effort on Spain's industrial export performance.

Keywords: Competitiveness; European Community; Exports; Spain (search for similar items in EconPapers)
Date: 1991-04
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