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How The Public Spending On Defense Can Affect Business Survival? The Case Of Shipbuilding In Spain

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  • RAMON-DANGLA, Remedios
  • YAÑEZ-MUÑOZ, Leonardo

Abstract

The shipbuilding is a technology intensive sector and it requires a long production process. Hence, it needs a financial leverage and it depends on economic policy decision. This work aims to reveal the footprints of the crisis and the variables with the most influence on the industry’s results. For that purpose we obtained a sample of companies from the SABI database, constructed financial ratios and analysed them for statistically significant changes by testing hypotheses with a 95% confidence level. In addition, statistical regression was used to find the economic variables that best explain the evolution of income in the set of firms and they are Ministry of Defence and business re-investment costs.

Suggested Citation

  • RAMON-DANGLA, Remedios & YAÑEZ-MUÑOZ, Leonardo, 2018. "How The Public Spending On Defense Can Affect Business Survival? The Case Of Shipbuilding In Spain," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 18(2), pages 71-86.
    • Handle: RePEc:eaa:eerese:v:18:y2018:i:2_5
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 40. Lists of articles on economic development of journal RSES, 2001-2020
      by MCG Blogs de Economía in Euro-American Association: World Development on 2020-02-25 20:32:00

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    More about this item

    Keywords

    Shipbuilding Industry; Financial Crisis; Public Budget; Financial Autonomy; Yield; Business Survival.;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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