DP19765 Trade Protection, Industrial Policy, and the Shaping of Local Preferences
Uniunea Europeana
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
din zilele anterioare