VOLUME III
SPRING 1995

NOMINAL PROTECTION AS A DETERMINANT FACTOR IN THE IMPORTS OF GOODS
 
ANA BUISÁN
ESTHER GORDO

Banco de España
 
This paper analyses the relevance of tariff barriers as a determinant of Spanish imports. It does so by estimating two non-energy import functions with annual data for the period 1964-1993. Employed in each is an alternative definition of the competitiveness variable, according to whether a measure of producer prices or a much broader measure such as the GDP deflator at factor cost -which addresses both the price of goods and that of services- is considered as an approximation to the domestic prices that are competing with import prices. The analysis focuses on the study of the effects of the incorporation of extemal protection on the explanatory capacity and elasticities of the model. Further, a quantification of the response by imports to import-price rises or reductions denved from changes in the level of nominal protection is given.
 
Keywords: tariff barriers, imports and competitiveness.

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