The Competitiveness of Spanish Industry

摘要: The Spanish economy has undergone a transformation in the last decade, course of which it emerged as significant industrial power. This process been associated, part with EC membership since 1986, result reorientation trade away from traditional trading partners, such Latin America and towards EC. In 1991, 67-2 per cent exports manufactures went to other countries, compared 51-2 1980. Spain has, too, favoured destination for foreign direct investment recent years, facilitating development new industries. Spain, however, faces number challenges next few years. First, contend economic monetary union (EMU). will entail not only monet ary discipline ensure that Maastricht convergence criteria are met, but also continuing effort on structural policies sustain competitiveness. Second, persist ence rate unemployment highest several coupled social policy aim encouraging higher female participation labour force means employment creation be priority. Third, need identified industry internationalise order underpin economy's performance. A fourth challenge is more balanced regional pattern development. Much growth late-1980s was relatively prosperous Madrid Catalonia regions, well auton omous region Valencia, all benefited dispro portionately inward boom. contrast, some 'rustbelt' areas North have adversely affected by decline industries shipbuilding steel-making, while less-developed regions South West con tinue lag behind their For political reasons, redressing balance vital. meeting these aims, pivotal role play both supplying domestic demand securing earnings. Before 1975 end Franco regime, had successfully industrialised its economy, largely concentrating consumer goods quite protection. wake 1973/4 oil crisis, fal tered, can seen Chart 1, manufacturing production 1984 no than decade earlier. Renewed output occurred onwards, considerably helped substantial cost advantage, different industries, notably motor vehicles, leading way. However, OECD (1992: p. 78) notes, 'Six years rapidly rising wages, appreciation peseta, reduced wide margin enjoyed past'.