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Trade policy and wage gradients: evidence from a protectionist turn

Content Provider	Springer Nature Link
Author	Tirado, Daniel A. Pons, Jordi Paluzie, Elisenda Martínez Galarraga, Julio
Copyright Year	2013
Abstract	In the spirit of Hanson (Econ J 107:113–133, 1997), we analyse, first, the existence of a relationship between the wage level and the market potential of Spanish regions; second, we explore the relative importance of domestic and foreign markets in this relationship; and finally, we examine the existence of a regional nominal wage gradient in Spain during the interwar period (1914–1930) centred on the main industrial cluster, Barcelona, and its transformation following the increase in protectionism in the Spanish economy as well as in the international economy. As suggested by NEG literature, our results support the hypothesis of a relationship between wages and regional market access and show the change in the regional wage structure following the gradual closing of the Spanish economy and of Spain’s trade partners, as a result of the increasing importance of the domestic market. We find evidence of the existence of a regional wage gradient centred on Barcelona which weakened during these years. Therefore, in Spain, during the interwar period, protectionist policies appear to have favoured the loss of centrality of a border region (Barcelona) and the relative rise of other locations.
Starting Page	295
Ending Page	318
Page Count	24
File Format	PDF
ISSN	18632505
Journal	Cliometrica
Volume Number	7
Issue Number	3
e-ISSN	18632513
Language	English
Publisher	Springer Berlin Heidelberg
Publisher Date	2013-01-10
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Trade policy Protectionism Industrial agglomerations Wage gradients Economic Theory History Econometrics Methodology and the History of Economic Thought
Content Type	Text
Resource Type	Article
Subject	History Economics and Econometrics

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