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Two Speed Regional Convergence In Portugal And the Importance of Structural Funds on Growth

Author

Listed:
  • Elias Soukiazis

    (Faculdade de Economia Universidade de Coimbra, Coimbra, Portugal)

  • Micaela Antunes

    (Faculdade de Economia Universidade de Coimbra, Coimbra, Portugal)

Abstract

The aim of this paper is twofold: in first place we want to ascertain if there is any difference in the convergence process between the 'Littoral' (coastal) and the 'Interior' (inland) areas in Portugal in terms of per capita income. In second place, we examine the relevance of Structural Funds (European Regional Development Funds) as conditioning factors influencing the convergence process in Portugal and to what extent these funds contributed to the growth of regional per capita income. In doing so, we apply a panel data approach to the convergence in per capita income among the 30 NUTS III regions in Portugal, and a separate analysis is given for the regions constituting the 'Littoral' and 'Interior' zones. The evidence shows that the distinction between the 'Littoral' and 'Interior' areas is important in the convergence process in Portugal, pronouncing two differeent convergence patterns. Structural funds help regions to grow faster but their marginal impact is small. Structural funds have a significant positive effect only in the 'Littoral' area helping these regions to grow faster. There is some evidence that the 'Littoral' area spreads out some spill-over effects on the whole regional growth in Portugal.

Suggested Citation

  • 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.
  • Handle: RePEc:ekn:ekonom:v:9:y:2006:i:2:p:222-241
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    Citations

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    Cited by:

    1. Mohl, Philipp & Hagen, Tobias, 2008. "Does EU Cohesion Policy Promote Growth? Evidence from Regional Data and Alternative Econometric Approaches," ZEW Discussion Papers 08-086, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Rodríguez-Pose, Andrés & Novak, Katja, 2013. "Learning processes and economic returns in European Cohesion policy," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 1-20.
    3. Tobias Hagen & Philipp Mohl, 2011. "Econometric Evaluation of EU Cohesion Policy: A Survey," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 16 Edward Elgar Publishing.
    4. Riccardo Crescenzi & Mara Giua, 2016. "Eu Cohesion Policy In Context: Does A Bottom-Up Approach Work In All Regions?," Departmental Working Papers of Economics - University 'Roma Tre' 0206, Department of Economics - University Roma Tre.
    5. Marta Simões & João Andrade & Adelaide Duarte, 2013. "A regional perspective on inequality and growth in Portugal using panel cointegration analysis," International Economics and Economic Policy, Springer, vol. 10(3), pages 427-451, September.
    6. Gertrudes Saúde Guerreiro, 2012. "Regional Income Distribution in Portugal," CEFAGE-UE Working Papers 2012_06, University of Evora, CEFAGE-UE (Portugal).
    7. repec:bla:tvecsg:v:107:y:2016:i:5:p:522-539 is not listed on IDEAS
    8. Enrico Fabrizi & Gianni Guastella & Stefano Marta & Francesco Timpano, 2016. "Determinants of Intra-Distribution Dynamics in European Regions: An Empirical Assessment of the Role of Structural Intervention," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 522-539, December.
    9. Riccardo Crescenzi & Mara Giua, 2016. "The EU Cohesion Policy in context: Does a bottom-up approach work in all regions?," Environment and Planning A, , vol. 48(11), pages 2340-2357, November.
    10. Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
    11. Soukiazis, Elias & Antunes, Micaela, 2011. "Is foreign trade important for regional growth? Empirical evidence from Portugal," Economic Modelling, Elsevier, vol. 28(3), pages 1363-1373, May.

    More about this item

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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