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Geographic Concentration in Portugal and Regional Specific Factors

  • Vitor Joao Pereira Domingues Martinho

This paper pretends to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1980 to 1999. Estimations are displayed with the model mentioned and for four different periods, namely 1980 to 1985, from 1986 to 1994, from 1980 to 1994 and from 1995 to 1999. The consideration of the various periods until 1994, aims to capture the effects of our entrance at the, in that time, EEC (European Economic Community) and the consideration of a period from 1995 is because the change in methodology for compiling statistical data taken from this time in Portugal. As a summary conclusion, noted that the location of manufacturing in Portugal is still mostly explained by specific factors, with a tendency to increase in some cases the explanation by these factors, having the effect "spillovers" and industrial policies little importance in this context.

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File URL: http://arxiv.org/pdf/1110.5558
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Paper provided by arXiv.org in its series Papers with number 1110.5558.

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Date of creation: Oct 2011
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Handle: RePEc:arx:papers:1110.5558
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  1. Jordi Galí, 1993. "Local externalities, convex adjustment costs and sunspot equilibria," Economics Working Papers 43, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
  4. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143.
  5. Kim, Sukkoo, 1999. "Regions, resources, and economic geography: Sources of U.S. regional comparative advantage, 1880-1987," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 1-32, January.
  6. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
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