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Application of convergence theories and new economic geography in Portugal. Differences and similarities

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  • Martinho, Vítor João Pereira Domingues

Abstract

The aim of this paper is to present a further contribution, with panel data, to the analysis of absolute convergence, associated with the neoclassical theory, and conditional, associated with endogenous growth theory, of the sectoral productivity at regional level (NUTs III, from 1995 to 1999). They are also presented empirical evidence of conditional convergence of productivity, for each of the economic sectors of the NUTS II of Portugal, from 1995 to 1999. The structural variables used in the analysis of conditional convergence is the ratio of capital/output, the flow of goods/output and location ratio. With this work we try, also, to analyse the agglomeration process in the Portuguese regions, using the New Economic Geography models.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32920.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32920

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Keywords: convergence; new economic geography; Portuguese regions;

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  1. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
  2. Venables, Anthony J., 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  3. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
  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. Fujita, Masahisa & Mori, Tomoya, 1996. "The role of ports in the making of major cities: Self-agglomeration and hub-effect," Journal of Development Economics, Elsevier, vol. 49(1), pages 93-120, April.
  6. Fujita, Masahisa, 1988. "A monopolistic competition model of spatial agglomeration : Differentiated product approach," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 87-124, February.
  7. Martinho, Vítor João Pereira Domingues, 2011. "The importance of increasing returns to scale in the process of agglomeration in Portugal: A non linear empirical analysis," MPRA Paper 32204, University Library of Munich, Germany.
  8. Krugman, Paul, 1994. "Complex Landscapes in Economic Geography," American Economic Review, American Economic Association, vol. 84(2), pages 412-16, May.
  9. Paul Krugman, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-174, Spring.
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