Human Capital and Growth in a Services Economy: the Case of Portugal
The persistence of relative low aggregate income and productivity levels and performance in Portugal might be linked to the strong weight of services, and especially traditional stagnant personal services, which have fewer opportunities for enhancing its productivity. The so-called modern progressive services, such as financial and business services and communications, on the other hand, have registered higher labor productivity levels, since they are more receptive to the use of information technologies and are increasingly tradable across borders. However, these services sub-sectors demand higher levels of human capital and so the relatively low educational levels of the Portuguese workforce might have prevented Portugal from capitalizing on the opportunities provided by modern services growth and continue to do so in the future. In order to shed some light on these interactions we investigate the existence of causality among sectoral productivity, services sector expansion, human capital, and aggregate productivity over the period 1970-2006 in the Portuguese economy. The evidence suggests bi-directional causality only between sectoral and aggregate productivity, with sectoral employment shares and human capital not revealing themselves as relevant for the explanation of the other variables nor being influenced by them. Across services sub-sectors, community social and personal services seem to be the most influential sector, making a positive and lasting contribution to aggregate productivity, and this seems to be the reason why, at a higher level of aggregation, non-market services appear thus as positive contributor to aggregate productivity, while market services have no influence.
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Av. Dias da Silva, 165, 3004-512 COIMBRA|
Phone: + 351 239 790 500
Fax: +351 239 403511
Web page: http://www.uc.pt/en/feuc/gemf/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Foellmi, Reto & Zweimüller, Josef, 2008. "Structural change, Engel's consumption cycles and Kaldor's facts of economic growth," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1317-1328, October.
- El Khoury, Antoine C. & Savvides, Andreas, 2006. "Openness in services trade and economic growth," Economics Letters, Elsevier, vol. 92(2), pages 277-283, August.
- Jochen Hartwig, 2010.
"Testing the growth effects of structural change,"
KOF Working papers
10-264, KOF Swiss Economic Institute, ETH Zurich.
- Daron Acemoglu & Veronica Guerrieri, 2008.
"Capital Deepening and Nonbalanced Economic Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 116(3), pages 467-498, 06.
- Daron Acemoglu & Veronica Guerrieri, 2006. "Capital Deepening and Non-Balanced Economic Growth," NBER Working Papers 12475, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Veronica Guerrieri, 2006. "Capital Deepening and Non-Balanced Economic Growth," 2006 Meeting Papers 207, Society for Economic Dynamics.
- L. Rachel Ngai & Christopher Pissarides, 2005.
"Structural change in a multi-sector model of growth,"
LSE Research Online Documents on Economics
4656, London School of Economics and Political Science, LSE Library.
- L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
- L. Rachel Ngai & Christopher Pissarides, 2007. "Structural change in a multi-sector model of growth," LSE Research Online Documents on Economics 4468, London School of Economics and Political Science, LSE Library.
- Ngai, L. Rachel & Pissarides, Christopher A., 2005. "Structural Change in a Multi-Sector Model of Growth," IZA Discussion Papers 1800, Institute for the Study of Labor (IZA).
- L. Rachel Ngai & Christopher Pissarides, 2004. "Structural change in a multi-sector model of growth," LSE Research Online Documents on Economics 3550, London School of Economics and Political Science, LSE Library.
- Ngai, Liwa Rachel & Pissarides, Christopher, 2004. "Structural Change in a Multi-Sector Model of Growth," CEPR Discussion Papers 4763, C.E.P.R. Discussion Papers.
- Dale W. Jorgenson & Marcel P. Timmer, 2011.
"Structural Change in Advanced Nations: A New Set of Stylised Facts,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 113(1), pages 1-29, 03.
- Jorgenson, D.W. & Timmer, Marcel, 2010. "Structural Change in Advanced Nations: A New Set of Stylised Facts," GGDC Research Memorandum GD-115, Groningen Growth and Development Centre, University of Groningen.
- Michael Peneder, 2002.
"Industrial Structure and Aggregate Growth,"
WIFO Working Papers
- Ghani, Ejaz & Kharas, Homi, 2010.
"The Service Revolution,"
World Bank - Economic Premise,
The World Bank, issue 14, pages 1-5, May.
- Gable, Susanna Lundstrom & Mishra, Saurabh, 2011. "Service Export sophistication and Europe's new growth model," Policy Research Working Paper Series 5793, The World Bank.
- Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.
- Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-52, May.
- Ester Gomes da Silva, 2011. "Portugal and Spain: catching up and falling behind. A comparative analysis of productivity trends and their causes, 1980-2007," FEP Working Papers 409, Universidade do Porto, Faculdade de Economia do Porto.
- Ester Gomes da Silva & Aurora A.C. Teixeira, 2009.
"Does structure influence growth? A panel data econometric assessment of ‘relatively less developed’ countries, 1979-2003,"
FEP Working Papers
316, Universidade do Porto, Faculdade de Economia do Porto.
- Ester G. Silva & Aurora A. C. Teixeira, 2011. "Does structure influence growth? A panel data econometric assessment of "relatively less developed" countries, 1979--2003," Industrial and Corporate Change, Oxford University Press, vol. 20(2), pages 457-510, April.
- Michael Peneder, 2007. "A sectoral taxonomy of educational intensity," Empirica, Springer, vol. 34(3), pages 189-212, July.
- Desmarchelier, Benoît & Djellal, Faridah & Gallouj, Faïz, 2013.
"Knowledge intensive business services and long term growth,"
Structural Change and Economic Dynamics,
Elsevier, vol. 25(C), pages 188-205.
- Benoit Desmarchelier & Faridah Djellal & Faïz Gallouj, 2012. "Knowledge intensive business services and long term growth," Post-Print halshs-00748661, HAL.
- Pugno, Maurizio, 2006.
"The service paradox and endogenous economic growth,"
Structural Change and Economic Dynamics,
Elsevier, vol. 17(1), pages 99-115, January.
- Maurizio Pugno, 2003. "The service paradox and endogenous economic growth," Department of Economics Working Papers 0301, Department of Economics, University of Trento, Italia.
- Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
- Bonatti, Luigi & Felice, Giulia, 2008. "Endogenous growth and changing sectoral composition in advanced economies," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 109-131, June.
- Margarida Duarte & Diego Restuccia, 2006.
"The Structural Transformation and Aggregate Productivity in Portugal,"
tecipa-261, University of Toronto, Department of Economics.
- Margarida Duarte & Diego Restuccia, 2007. "The structural transformation and aggregate productivity in Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 6(1), pages 23-46, April.
- Andreas Dietrich, 2009.
"Does Growth Cause Structural Change, or Is it the Other Way Round? A Dynamic Panel Data Analyses for Seven OECD Countries,"
Jena Economic Research Papers
2009-034, Friedrich-Schiller-University Jena.
- Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
- Uppenberg, Kristian & Strauss, Hubert, 2010. "Innovation and productivity growth in the EU services sector," EIB Economic Surveys, European Investment Bank, number 2.
- Kapur, Basant K., 2012. "Progressive services, asymptotically stagnant services, and manufacturing: Growth and structural change," Journal of Economic Dynamics and Control, Elsevier, vol. 36(9), pages 1322-1339.
When requesting a correction, please mention this item's handle: RePEc:gmf:wpaper:2013-21.. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Santos)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.