The home market effect in the Spanish industry, 1965–1995

Abstract

This study was intended to identify empirically the existence of the home market effect (HME) in Spanish manufacturing industry, a case which shows some incipient evidence in very early stages of development, and an increasing relevance of this phenomenon over time. Our empirical test is carried out with 17 regions between 1965 and 1995, and lends support to the hypothesis of the existence of the HME in five of the nine industries analysed. These results are obtained using a specification in line with the traditional one but new in the sense that it is defined in proportions instead of levels; this approach has conceptual advantages because it is a relative one, like the definition of HME itself.

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Correspondence to Nuria Domeque Claver.

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Domeque Claver, N., Fillat Castejón, C. & Sanz Gracia, F. The home market effect in the Spanish industry, 1965–1995. Ann Reg Sci 46, 379–396 (2011). https://doi.org/10.1007/s00168-009-0338-z

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JEL Classification

  • R12
  • R30