Is foreign trade important for regional growth? Empirical evidence from Portugal
The aim of this study is to investigate whether openness, export shares or trade balances affect regional growth in Portugal. Human capital is also considered as a conditional factor to growth, expressed by the rate of success in high school education. Thus, we analyse whether the combination of international trade and human capital is relevant to explain regional growth in Portugal and how it affects the convergence process between regions. In the empirical analysis, interaction terms are introduced to explore the existence of different performances between regions of the Littoral and the Interior. As an alternative to the traditional approach that considers the population growth rate, we include the share of sectoral employment aiming to capture labour specialisation in the main sectors of economic activity and measure its impact on regional growth. The empirical analysis estimates the conditional convergence model of the Barro's type, applied to the Portuguese NUTS3 regions for the period 1996-2005. The GMM estimation approach applied to regional panel data reveals that factors associated with external trade, human capital and sectoral labour share (especially of the industrial sector) are relevant to explain regional growth and convergence in Portugal.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Leo Michelis & Athanasios Papadopoulos & Gregory Papanikos, 2004. "Regional convergence in Greece in the 1980s: an econometric investigation," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 881-888.
- John F. Helliwell & Ross McKitrick, 1998.
"Comparing Capital Mobility Across Provincial and National Borders,"
NBER Working Papers
6624, National Bureau of Economic Research, Inc.
- John F. Helliwell & Ross McKitrick, 1999. "Comparing Capital Mobility Across Provincial and National Borders," Canadian Journal of Economics, Canadian Economics Association, vol. 32(5), pages 1164-1173, November.
- Aki Kangasharju, 1998. "beta convergence in Finland: regional differences in speed of convergence," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 679-687.
- Barro, Robert J. & Sala-i-Martin, Xavier, 1992.
3451299, Harvard University Department of Economics.
- de la Fuente, Angel, 1996.
"On the Sources of Convergence: A Close Look at the Spanish Regions,"
CEPR Discussion Papers
1543, C.E.P.R. Discussion Papers.
- de la Fuente, Angel, 2002. "On the sources of convergence: A close look at the Spanish regions," European Economic Review, Elsevier, vol. 46(3), pages 569-599, March.
- de la Fuente, A, 1996. "On the Sources of Convergence : A Close Look at the Spanish Regions," UFAE and IAE Working Papers 362.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
- Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 407-37, May.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- A. P. Thirlwall, 2007. "Regional Problems are "Balance-of-Payments" Problems," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages S89-S95.
- Galor, Oded, 1996.
"Convergence? Inferences from Theoretical Models,"
Royal Economic Society, vol. 106(437), pages 1056-69, July.
- David T. Coe & Elhanan Helpman & Alexander Hoffmaister, 1995.
"North-South R&D Spillovers,"
NBER Working Papers
5048, National Bureau of Economic Research, Inc.
- Michele Battisti & Gianfranco Vaio, 2008.
"A spatially filtered mixture of β-convergence regressions for EU regions, 1980–2002,"
Springer, vol. 34(1), pages 203-203, February.
- Michele Battisti & Gianfranco Di Vaio, 2008. "A spatially filtered mixture of β-convergence regressions for EU regions, 1980–2002," Empirical Economics, Springer, vol. 34(1), pages 105-121, February.
- Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996.
" Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics,"
Journal of Economic Growth,
Springer, vol. 1(3), pages 363-89, September.
- Elias Soukiazis & Sara Proença, 2008. "Tourism as an alternative source of regional growth in Portugal: a panel data analysis at NUTS II and III levels," Portuguese Economic Journal, Springer, vol. 7(1), pages 43-61, April.
- Valentina Meliciani & Franco Peracchi, 2006.
"Convergence in per-capita GDP across European regions: a reappraisal,"
Springer, vol. 31(3), pages 549-568, September.
- Valentina Meliciani & Franco Peracchi, 2004. "Convergence in Per-capita GDP Across European Regions: A Reappraisal," CEIS Research Paper 58, Tor Vergata University, CEIS.
- Pedro Ramos, 2007. "Does the trade balance really matter for regions?," The Annals of Regional Science, Springer, vol. 41(1), pages 229-243, March.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Nuno Crespo & Maria Paula Fontoura, 2009.
"Determinant factors of structural similarity at the regional level: evidence from Portugal,"
Working Papers Department of Economics
2009/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- CRESPO, Nuno & FONTOURA, María Paula, 2010. "Determinant Factors Of Structural Similarity At The Regional Level: Evidence From Portugal," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(1).
- A. Di Liberto, 2005.
"Convergence and divergence in Neoclassical Growth models with human capital,"
Working Paper CRENoS
200508, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Di Liberto Adriana, 2007. "Convergence and Divergence in Neoclassical Growth Models with Human Capital," Economia politica, Società editrice il Mulino, issue 2, pages 289-322.
- Bayoumi, Tamim A. & Rose, Andrew K., 1993. "Domestic savings and intra-national capital flows," European Economic Review, Elsevier, vol. 37(6), pages 1197-1202, August.
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Elias Soukiazis & Micaela Antunes, 2006. "Two Speed Regional Convergence In Portugal And the Importance of Structural Funds on Growth," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 9(2), pages 222-241, Winter.
- David Roodman, 2006.
"How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata,"
103, Center for Global Development.
- David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
- Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
- Bond, Stephen Roy & Hoeffler, Anke & Temple, Jonathan, 2001.
"GMM Estimation of Empirical Growth Models,"
CEPR Discussion Papers
3048, C.E.P.R. Discussion Papers.
- JÃ¶rg Decressin & Piti Disyatat, 2000. "Capital Markets and External Current Accounts; What to Expect From the Euro," IMF Working Papers 00/154, International Monetary Fund.
- Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, November.
- Crespo, N. & Fontoura, M.P., 2006. "Economic centrality, per capita income and human capital. Some results at regional and local level in 275 counties Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(1).
- Aadne Cappelen & Jan Fagerberg & Bart Verspagen, 1999. "Lack of regional convergence," Working Papers Archives 1999001, Centre for Technology, Innovation and Culture, University of Oslo.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:1363-1373. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.