The creation of comparative advantage in the Spanish automobile industry, 1898-1996

Abstract

This article focuses on the history of the Spanish automobile industry because its development can be taken as a case of success of strategic policies in the long-tem. It shows how these policies were effective in modifying the pattern of comparative advantage. It is also argued that similar policies were adopted by major producers in America, Europe and Asia throughout the Twentieth century.

Moreover; the work analyzes the additional factors which help to explain the present revealed comparative advantage of Spain in the production of cars. Since 1898 the main element of continuity has been the creation of externalities of Marshallian type: qualified labour; specialized suppliers and accumulation of knowledge about technologies and markets.