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Map of the international exposure of the Spanish economy

Author

Listed:
  • Miguel García-Posada

    (Banco de España)

  • Josep M.ª Vilarrubia

    (Banco de España)

Abstract

This paper analyses the levels of interdependence and risk that take place in the economic relations between Spain and a large number of countries. Bilateral data on commercial and financial links between Spain and the rest of the world are used in order to build, by means of a Principal Components Analysis, an interdependence index between Spain and each country. Moreover, the aggregation by means of the same technique of several measures of risk, such as sovereign credit ratings and more general ones, enables to construct a risk index for each country. By combining the information of both indices, it is found that the greatest exposures of the Spanish economy occur with countries which are associated to low levels of risk (mainly the OECD), whereas the highest exposures that are related to intermediate levels of risk happen with Latin American countries and exporters of energy products.

Suggested Citation

  • Miguel García-Posada & Josep M.ª Vilarrubia, 2008. "Map of the international exposure of the Spanish economy," Occasional Papers 0807, Banco de España.
    • Handle: RePEc:bde:opaper:0807
    as

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    File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/08/Fic/do0807.pdf
    File Function: First spanish version, August 2008
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    commercial integration; financial integration; energy dependence; risk;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    NEP fields

    This paper has been announced in the following NEP Reports:

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