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What said the economic theory about Portugal

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  • Martinho, Vítor João Pereira Domingues

Abstract

This work aims to test the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for five Portuguese regions (NUTS II) from 1986 to 1994. It is intended to test, also in this work, the alternative interpretation of (2)Rowthorn (1975) of the Verdoorn's Law for the same regions and periods. The results of this work will be complemented with estimates of these relationships to other sectors of the economy than the industry and for the total economy of each region. This work aims, yet, to study the Portuguese regional agglomeration process, using the linear form of the New Economic Geography models. In a theoretical context, it is intended, also, to explain the complementarily of clustering models, associated with the New Economic Geography, and polarization associated with the Keynesian tradition, describing the mechanisms by which these processes are based. The aim of this paper is, yet, to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the sectoral productivity at regional level. Presenting some empirical evidence of absolute convergence of productivity for each of the economic sectors in each of the regions of mainland Portugal (NUTS II) in the period 1986 to 1994.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33021.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:33021

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Keywords: agglomeration; polarization; convergence; Portuguese regions; panel data;

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  1. Hanson, Gordon H., 1998. "Regional adjustment to trade liberalization," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 419-444, July.
  2. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  3. Martinho, Vítor João Pereira Domingues, 2011. "Sectoral convergence in output per worker between Portuguese regions," MPRA Paper 32269, University Library of Munich, Germany.
  4. Martinho, Vítor João Pereira Domingues, 2011. "The Verdoorn law in the Portuguese regions: a panel data analysis," MPRA Paper 32186, University Library of Munich, Germany.
  5. Martinho, Vítor João Pereira Domingues, 2011. "Regional agglomeration in Portugal: a linear analysis," MPRA Paper 32337, University Library of Munich, Germany.
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