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

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Author Info
Pedro Lains () (Instituto de Ciências Sociais, Universidade de Lisboa)

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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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Publisher 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
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Handle: RePEc:ave:wpaper:372006

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

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
N14 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Europe: 1913-
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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(2002-1), pages 1-78. [Downloadable!]
  2. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 353-364, May. [Downloadable!] (restricted)
  3. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April. [Downloadable!] (restricted)
    Other versions:
  4. Barros, Pedro Pita, 2002. "Convergence and Information Technologies--The Experience of Greece, Portugal and Spain," Applied Economics Letters, Taylor and Francis Journals, vol. 9(10), pages 675-80, August. [Downloadable!] (restricted)
  5. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Blackwell Publishing, vol. 39(3), pages 537-552, 09. [Downloadable!] (restricted)
  6. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Blackwell Publishing, vol. 41(5), pages 897-921, December. [Downloadable!] (restricted)
  7. Karen-Helene Midelfart & Henry G. Overman & Anthony J. Venables, 2003. "Monetary Union and the Economic Geography of Europe," Journal of Common Market Studies, Blackwell Publishing, vol. 41(5), pages 847-868, December. [Downloadable!] (restricted)
  8. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December. [Downloadable!] (restricted)
  9. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1997. "Growth effects of European integration," European Economic Review, Elsevier, vol. 41(8), pages 1537-1557, August. [Downloadable!] (restricted)
    Other versions:
  10. 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 and Francis Journals, vol. 32(3), pages 223-234, May. [Downloadable!] (restricted)
  11. Krugman, Paul & Venables, Anthony J., 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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