Paper #1273

Title:

The economic effects of a Spanish trade boycott against Catalan products

Authors:

Xavier Cuadras Morató and Modest Guinjoan

Date:

May 2011

Abstract:

We study the potential consequences of a hypothetical trade boycott against Catalan products organized by some sectors of the Spanish society mainly for political reasons. A symmetric trade boycott would have two effects: a reduction of Catalan exports to Spain and a partial process of import substitution in Catalonia. In order to quantify the economic impact of the boycott, we compare the "actual" Catalan economy, as described in the input-output table for 2005, with a "simulated" Catalan economy that takes into account the effects of a boycott on the trade exchanges between Catalonia and Spain.

Keywords:

trade boycott, input output analysis

JEL codes:

C67, F17, F51

Area of Research:

Macroeconomics and International Economics

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