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Growth in the ‘Cohesion Countries’: the Irish tortoise and the Portuguese hare, 1979-2002

  • Pedro Lains

    ()

    (Instituto de Ciências Sociais, Universidade de Lisboa)

The deepening of economic and financial integration in the European Union has led to different responses from the group of ‘cohesion’ countries. Ireland and Portugal stand out as the two extreme examples, as Ireland caught-up to the forerunners very rapidly after the launching of EMU, in 1992, whereas Portugal lost ground. This paper looks at structural shifts in order to explain the different performances of the two economies. We conclude that Portugal’s labour productivity lag was the outcome of a less favourable structure of employment; that differences in the structure of employment are not clustered in specific industries; and that such structural differences are associated with different factor endowments, namely physical and human capital.

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Paper provided by Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro in its series Working Papers de Economia (Economics Working Papers) with number 37.

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Length: 38 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:ave:wpaper:372006
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  1. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 41(5), pages 897-921, December.
  2. Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
  3. Eoin O’Leary, 1997. "The convergence performance of Ireland among EU countries: 1960 to 1990," Journal of Economic Studies, Emerald Group Publishing, vol. 24(1/2), pages 43-58, January.
  4. Pedro Pita Barros, 2002. "Convergence and information technologies - the experience of Greece, Portugal and Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 675-680.
  5. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 1-78.
  6. Krugman, Paul & Venables, Anthony J, 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers.
  7. Frank Barry, 2000. "Foreign direct investment, cost competitiveness and the transformation of the Irish economy," Development Southern Africa, Taylor & Francis Journals, vol. 17(3), pages 289-305.
  8. Cassidy, Mark, 2004. "Productivity in Ireland: Trends and Issues," Quarterly Bulletin Articles, Central Bank of Ireland, pages 83-105, April.
  9. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
  10. Davies, Stephen & Rondi, Laura & Sembenelli, Alessandro, 2001. "European Integration and the Changing Structure of EU Manufacturing, 1987-1993," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 37-75, March.
  11. Lains, Pedro, 2003. "Catching up to the European core: Portuguese economic growth, 1910-1990," Explorations in Economic History, Elsevier, vol. 40(4), pages 369-386, October.
  12. J. E. Birnie & D. M. W. N. Hitchens, 1998. "Productivity and Income Per Capita Convergence in a Peripheral European Economy: The Irish Experience," Regional Studies, Taylor & Francis Journals, vol. 32(3), pages 223-234.
  13. Frank Barry, 1996. "Peripherality in Economic Geography and Modern Growth Theory: Evidence from Ireland's Adjustment to Free Trade," The World Economy, Wiley Blackwell, vol. 19(3), pages 345-365, 05.
  14. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, vol. 39(3), pages 537-552, 09.
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