The Spanish automotive industry as a factor of the economic growth

Abstract

The automotive industry has become central for the sustainable economic growth of our country. The objective of this study is to investigate why Spain is an appealing country for foreign investors and to describe the development and current situation of the automotive industry in Spain. The key economic indicators of the sector will be analysed, as well as the different governmental subsidies which have supported the industry by helping to reactiviate internal demand and encouraging the growth of this sector in Spain. The level of exports, imports, the level of production and sales are among the main indicators that has been studied in order to explain the positive development in recent years.The results shows that the most important factors that influence in the cars production are the level of sales of the most important firms, the State supports and the level of GDP of the neighboring countries.