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Two Speed Regional Convergence In Portugal And the Importance of Structural Funds on Growth

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  • Elias Soukiazis

    (Faculdade de Economia Universidade de Coimbra, Coimbra, Portugal)

  • Micaela Antunes

    (Faculdade de Economia Universidade de Coimbra, Coimbra, Portugal)

Abstract

The aim of this paper is twofold: in first place we want to ascertain if there is any difference in the convergence process between the 'Littoral' (coastal) and the 'Interior' (inland) areas in Portugal in terms of per capita income. In second place, we examine the relevance of Structural Funds (European Regional Development Funds) as conditioning factors influencing the convergence process in Portugal and to what extent these funds contributed to the growth of regional per capita income. In doing so, we apply a panel data approach to the convergence in per capita income among the 30 NUTS III regions in Portugal, and a separate analysis is given for the regions constituting the 'Littoral' and 'Interior' zones. The evidence shows that the distinction between the 'Littoral' and 'Interior' areas is important in the convergence process in Portugal, pronouncing two differeent convergence patterns. Structural funds help regions to grow faster but their marginal impact is small. Structural funds have a significant positive effect only in the 'Littoral' area helping these regions to grow faster. There is some evidence that the 'Littoral' area spreads out some spill-over effects on the whole regional growth in Portugal.

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Bibliographic Info

Article provided by Cyprus Economic Society and University of Cyprus in its journal Ekonomia.

Volume (Year): 9 (2006)
Issue (Month): 2 (Winter)
Pages: 222-241

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Handle: RePEc:ekn:ekonom:v:9:y:2006:i:2:p:222-241

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Web page: http://www.ekonomia.ucy.ac.cy/
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Cited by:
  1. Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
  2. Gertrudes Saúde Guerreiro, 2012. "Regional Income Distribution in Portugal," CEFAGE-UE Working Papers 2012_06, University of Evora, CEFAGE-UE (Portugal).
  3. Rodríguez-Pose, Andrés & Novak, Katja, 2013. "Learning processes and economic returns in European Cohesion policy," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 25, pages 1-20.
  4. Marta Simões & João Sousa Andrade & Adelaide Duarte, 2013. "A Regional Perspective on Inequality and Growth in Portugal Using Panel Cointegration Analysis," GEMF Working Papers 2013-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
  5. Mohl, Philipp & Hagen, Tobias, 2008. "Does EU Cohesion Policy Promote Growth? Evidence from Regional Data and Alternative Econometric Approaches," ZEW Discussion Papers 08-086, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Soukiazis, Elias & Antunes, Micaela, 2011. "Is foreign trade important for regional growth? Empirical evidence from Portugal," Economic Modelling, Elsevier, vol. 28(3), pages 1363-1373, May.

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