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Spatial effects and convergence theory in the Portuguese situation

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  • Martinho, Vítor João Pereira Domingues

Abstract

This study analyses, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence (product per worker) in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002. To analyse the data, Moran’s I statistics is considered, and it is stated that productivity is subject to positive spatial autocorrelation (productivity develops in a similar manner to productivity in neighbouring regions), above all, in agriculture and services. Industry and the total of all sectors present indications that they are subject to positive spatial autocorrelation in productivity. On the other hand, it is stated that the indications of convergence, specifically bearing in mind the concept of absolute convergence, are greater in industry. Taking into account the estimation results, it is stated once again that the indications of convergence are greater in industry, and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially redundant dependent variable) and spatial error (capturing spatial autocorrelation through a spatially redundant error term), as well as human capital, condition the convergence of productivity in the various economic sectors of Portuguese region in the period under consideration.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32185.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32185

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Keywords: Spatial Econometric; Growth Endogenous Theory; Portuguese Regions;

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  1. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May.
  2. Krister Sandberg, 2004. "Growth of GRP in Chinese Provinces. A Test for Spatial Spillovers," ERSA conference papers ersa04p596, European Regional Science Association.
  3. Johan Lundberg, 2004. "Using Spatial Econometrics to Analyze Local Growth in Sweden," ERSA conference papers ersa04p25, European Regional Science Association.
  4. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
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  7. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, vol. 8(4), pages 57-69, Winter.
  8. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
  9. Maria Abreu & Henride Groot & Raymond Florax, 2004. "Spatial Patterns of Technology Diffusion: An Empirical Analysis Using TFP," ERSA conference papers ersa04p425, European Regional Science Association.
  10. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 117-147.
  11. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  12. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  13. Martinho, Vítor João Pereira Domingues, 2011. "Spatial effects and convergence theory in the Portuguese situation," MPRA Paper 32185, University Library of Munich, Germany.
  14. Giuseppe Arbia & Gianfranco Piras, 2005. "Convergence in per-capita GDP across European regions using panel data models extended to spatial autocorrelation effects," ISAE Working Papers 51, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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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 effects and convergence theory in the Portuguese situation," MPRA Paper 32185, University Library of Munich, Germany.
  3. Martinho, Vítor João Pereira Domingues, 2011. "Net migration and convergence in Portugal. An alternative analysis," MPRA Paper 32801, University Library of Munich, Germany.
  4. Martinho, Vítor João Pereira Domingues, 2011. "What said the neoclassical and endogenous growth theories about Portugal?," MPRA Paper 32631, University Library of Munich, Germany.
  5. Martinho, Vítor João Pereira Domingues, 2011. "Agglomeration and interregional mobility of labor in Portugal," MPRA Paper 32203, University Library of Munich, Germany.

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