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Spatial Effects and Verdoorn Law in the Portuguese Context

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  • Vitor Joao Pereira Domingues Martinho

Abstract

The consideration of spatial effects at a regional level is becoming increasingly frequent and the work of Anselin (1988), among others, has contributed to this. This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker) in the NUTs III economic sectors of mainland Portugal from 1995 to 1999 and from 2000 to 2005 (taking in count the availability of data), considering the Verdoorn relationship. To analyse the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total of all sectors present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions (Martinho, 2011).

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Paper provided by arXiv.org in its series Papers with number 1110.5573.

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Date of creation: Oct 2011
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Handle: RePEc:arx:papers:1110.5573

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Cited by:
  1. Martinho, Vítor João Pereira Domingues, 2011. "Application of Keynesian and convergence theories in Portugal. Differences and similarities," MPRA Paper 32910, University Library of Munich, Germany.
  2. Martinho, Vítor João Pereira Domingues, 2011. "Spatial autocorrelation and Verdoorn law in the Portuguese nuts III," MPRA Paper 32165, University Library of Munich, Germany.
  3. Martinho, Vítor João Pereira Domingues, 2011. "What the keynesian theory said about Portugal?," MPRA Paper 32610, University Library of Munich, Germany.
  4. Martinho, Vítor João Pereira Domingues, 2011. "Spatial effects and Verdoorn law in the Portuguese context," MPRA Paper 32183, University Library of Munich, Germany.
  5. Vitor Joao Pereira Domingues Martinho, 2011. "Agglomeration and Interregional Mobility of Labor in Portugal," Papers 1110.5534, arXiv.org.

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