Drivers of Spain’s Export Performance and the Role of the Labor Market Reforms

Author/Editor:

Jorge Salas

Publication Date:

December 13, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Spain’s export performance strengthened after the global financial crisis, and exports now represent more than a third of GDP. This paper argues that several factors contributed to that achievement: external demand, supported by greater diversification of destination markets; enhanced export orientation of Spanish firms, partly as a response to lower domestic demand after the crisis; and competitiveness gains, reflecting in part changes in the labor market following structural reforms adopted in 2010 and 2012. Based on cross-country panel regressions linking real export growth to employment protection indicators, those labor market reforms are estimated to account for nearly one-tenth to above one-quarter of Spain’s total export growth rate from 2010 to 2013.

Series:

Working Paper No. 18/283

Subject:

English

Publication Date:

December 13, 2018

ISBN/ISSN:

9781484386941/1018-5941

Stock No:

WPIEA2018283

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

23

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