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Portugal–EU Convergence Revisited: Evidence for the Period 1960–2003

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  • Miguel Lebre de Freitas

Abstract

This paper uses the stochastic approach to convergence to investigate whether real per capita GDP in Portugal has been converging to the EU15 average. The estimation accounts for conditional convergence, transitional dynamics and up to two structural breaks. It is found that per capita GDP in Portugal has indeed converged to the EU15 average, but the pace of convergence has not been uniform along time. In particular, a slow down in the convergence process is identified in 1974. This result depends, however, as to whether the choice of this break-date is viewed as uncorrelated with the data. No evidence of acceleration in the speed of convergence is found after EC accession, in 1986. Copyright IAES 2006

Suggested Citation

  • Miguel Lebre de Freitas, 2006. "Portugal–EU Convergence Revisited: Evidence for the Period 1960–2003," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(3), pages 408-418, August.
  • Handle: RePEc:kap:iaecre:v:12:y:2006:i:3:p:408-418:10.1007/s11294-006-9028-0
    DOI: 10.1007/s11294-006-9028-0
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    More about this item

    Keywords

    Income Convergence; The Portuguese Economy; Unit Root test; C32; O40;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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