Economic policy and automobile industry backwardness (1907-1936): the Spanish case versus Japan

Abstract

In the automotive industry, State performance is one of the factors behind the backwardness of Spain at the time of joining the mass production. In other countries, such as Japan, the intervention of the authorities was vital in the early stages of this industry. However, in Spain neither fiscal policy, nor the tariff and the legal mesures to promote productions contributed significantly to create a comparative advantage in car manufacturing before 1936. This paper analyzes the performance of the Spanish state using the Japanese case as a reference.