This paper investigates the determinants of Spain's industrial imports from the other Community countries during 1978-89 by using a sectoral panel approach. The results show that price elasticities of import demand differ among industrial sectors. Additionally, the demand specification includes, besides income and relative prices, other strategic behavior variables of firms. The results prove the significant influence of the technological advantage of the EC and foreign investment, not only in the evolution of imports but also in price and income elasticities.

Keywords: imports, elasticities, technological advantage, foreign investment, EC.