The Keynesian theory and the manufactured industry in Portugal
About the economic growth the Keynesian theorists defend circular and cumulative processes, benefiting the rich localities and harming the poorest, without external interventions. In these processes the Verdoorn law has an important role. For Verdoorn (1949) the productivity growth rate is endogenous and depends of the output growth rate, capturing dynamic contexts, endogeneity of the factors and increasing economies of scale, namely in the industry. This relationship later becomes the second law of Kaldor (1966 and 1967). For Portugal there are few works or none, than those of the author, with the Verdoorn law. In this way, seem important analyze this relationship for the manufactured industry of the Portuguese regions and conclude about these contexts in Portugal. It was used data from two periods, 1986-1994 and 1995-1999, and panel data econometric methods. The two periods is to capture the effect of the Portuguese entrance in the European Economic Community and of the first Community Support Framework (1989-1993) for Portugal. As main conclusion, for the two periods, it is verified strong increasing returns in the manufactured industry and as consequence regional divergence of this sector.
References listed on IDEAS
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- Alvaro Angeriz & John McCombie & Mark Roberts, 2008. "Returns to Scale for EU Regional Manufacturing," Working Papers 20, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Martinho, Vítor João Pereira Domingues, 2011.
"The Verdoorn law in the Portuguese regions: a panel data analysis,"
32186, University Library of Munich, Germany.
- Vitor Joao Pereira Domingues Martinho, 2011. "The Verdoorn Law in the Portuguese Regions: A Panel Data Analysis," Papers 1110.5544, arXiv.org.
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- Patrick Llerena & Andre' Lorentz, 2003. "Cumulative Causation and Evolutionary Micro-Founded Technical Change: A Growth Model with Integrated Economies," LEM Papers Series 2003/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Patrick Llerena & André Lorentz, 2004. "Cumulative Causation and Evolutionary Micro-Founded Technical Change : A Growth Model with Integrated Economies," Working Papers of BETA 2004-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Mark Knell, 2004. "Structure Change and the Kaldor-Verdoorn law in the 1990s," Revue d'Économie Industrielle, Programme National Persée, vol. 105(1), pages 71-83. Full references (including those not matched with items on IDEAS)
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