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Growth in the ‘Cohesion Countries’: the Irish tortoise and the Portuguese hare, 1979-2002

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  • Pedro Lains

    ()
    (Instituto de Ciências Sociais, Universidade de Lisboa)

Abstract

The deepening of economic and financial integration in the European Union has led to different responses from the group of ‘cohesion’ countries. Ireland and Portugal stand out as the two extreme examples, as Ireland caught-up to the forerunners very rapidly after the launching of EMU, in 1992, whereas Portugal lost ground. This paper looks at structural shifts in order to explain the different performances of the two economies. We conclude that Portugal’s labour productivity lag was the outcome of a less favourable structure of employment; that differences in the structure of employment are not clustered in specific industries; and that such structural differences are associated with different factor endowments, namely physical and human capital.

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Bibliographic Info

Paper provided by Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro in its series Working Papers de Economia (Economics Working Papers) with number 37.

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Length: 38 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:ave:wpaper:372006

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Keywords: Economic growth; structural change; European integration; Ireland; Portugal.;

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References

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  1. Pedro Pita Barros, 2002. "Convergence and information technologies - the experience of Greece, Portugal and Spain," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 9(10), pages 675-680.
  2. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 1-78.
  3. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1995. "Growth Effects of European Integration," Working Paper Series, Research Institute of Industrial Economics 439, Research Institute of Industrial Economics.
  4. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 11(4), pages 371-392, December.
  5. Cassidy, Mark, 2004. "Productivity in Ireland: Trends and Issues," Quarterly Bulletin Articles, Central Bank of Ireland, pages 83-105, April.
  6. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 39(3), pages 537-552, 09.
  7. J. E. Birnie & D. M. W. N. Hitchens, 1998. "Productivity and Income Per Capita Convergence in a Peripheral European Economy: The Irish Experience," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(3), pages 223-234.
  8. Krugman, Paul & Venables, Anthony J., 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 886, C.E.P.R. Discussion Papers.
  9. Frank Barry, 2000. "Foreign direct investment, cost competitiveness and the transformation of the Irish economy," Development Southern Africa, Taylor & Francis Journals, Taylor & Francis Journals, vol. 17(3), pages 289-305.
  10. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 41(5), pages 897-921, December.
  11. Frank Barry, 1996. "Peripherality in Economic Geography and Modern Growth Theory: Evidence from Ireland's Adjustment to Free Trade," The World Economy, Wiley Blackwell, vol. 19(3), pages 345-365, 05.
  12. Eoin O’Leary, 1997. "The convergence performance of Ireland among EU countries: 1960 to 1990," Journal of Economic Studies, Emerald Group Publishing, Emerald Group Publishing, vol. 24(1/2), pages 43-58, January.
  13. Lains, Pedro, 2003. "Catching up to the European core: Portuguese economic growth, 1910-1990," Explorations in Economic History, Elsevier, Elsevier, vol. 40(4), pages 369-386, October.
  14. Davies, Stephen & Rondi, Laura & Sembenelli, Alessandro, 2001. "European Integration and the Changing Structure of EU Manufacturing, 1987-1993," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 37-75, March.
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Cited by:
  1. António B. Moniz, 2008. "The transformation of work? A quantitative evaluation of changes in work in Portugal," IET Working Papers Series, Universidade Nova de Lisboa, IET/CESNOVA-Research on Enterprise and Work Innovation, Faculty of Science and Technology 07/2008, Universidade Nova de Lisboa, IET/CESNOVA-Research on Enterprise and Work Innovation, Faculty of Science and Technology.

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