The influence of factor prices and import prices on the Catalan Economy (1994)

• Main Authors: Maria Llop Llop, Antonio Manresa Sánchez
• Format: Article
• Language: English
• Published: AECR 2004-01-01
• Series: Investigaciones Regionales - Journal of Regional Research
• Subjects: input-output model; cost of processing sectors; production prices; consumption prices
• Online Access: http://www.aecr.org/images/ImatgesArticles/2007/06%20%20M.%20Llop.pdf

The objective of this paper is to show the influence of the primary inputs prices on the production prices in the Catalan Economy. The methodology we use is the input-output framework, which has permitted us to reflect the changes in the prices of domestic processing sectors under changes in their input costs. Our results demonstrate that production prices react with higher intensity when there is a change in the import costs, in comparison with a change in the domestic costs. This evidence allows us to conclude that the price control inside the economy may be very limited when the increased cost is caused by the foreign sector.