IDEAS home Printed from https://ideas.repec.org/p/mde/wpaper/0060.html
   My bibliography  Save this paper

Reallocation of Resources between Tradable and Non-Tradable Sectors in Portugal: Developing a new Identification Strategy for the Tradable Sector

Author

Listed:
  • Ana Fontoura Gouveia

    (Gabinete de Planeamento, Estratégia, Avaliação e Relações Internacionais / Office for Economic Policy and International Affairs - Ministério das Finanças / Ministry of Finance)

  • Filipa Canas

Abstract

Portugal implemented a large number of structural reforms in the recent years, which are expected to enhance the allocation of resources in the economy, namely from the non-tradable to the tradable sector. We argue that the methodology to identify the tradable sector used by some international institutions is outdated and may hamper an accurate assessment of the structural progress achieved so far. Based on an enhanced methodology to identify the tradable sector of the economy, we provide more solid ground for future assessments of structural economic developments. By looking at some standard economic indicators, we show that our new criterion provides a different picture of the resource allocation in the Portuguese economy and of the adjustment of the recent years as compared to the one provided by commonly used criteria.

Suggested Citation

  • Ana Fontoura Gouveia & Filipa Canas, 2016. "Reallocation of Resources between Tradable and Non-Tradable Sectors in Portugal: Developing a new Identification Strategy for the Tradable Sector," GEE Papers 0060, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2016.
    • Handle: RePEc:mde:wpaper:0060
    as

    Download full text from publisher

    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_60.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. International Monetary Fund, 2015. "Portugal: Selected Issues," IMF Staff Country Reports 2015/127, International Monetary Fund.
    2. Rudolfs Bems, 2008. "Aggregate Investment Expenditures on Tradable and Nontradable Goods," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 852-883, October.
    3. Ana Cristina Soares & João Amador, 2012. "Competition in the Portuguese Economy: a view on tradables and non-tradables," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    4. Ricardo Reis, 2013. "The Portugese Slump and Crash and the Euro Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 143-210.
    5. Dwyer, Jacqueline, 1992. "The Tradeable Non-tradeable Dichotomy: A Practical Approach," Australian Economic Papers, Wiley Blackwell, vol. 31(59), pages 443-459, December.
    6. Stephen Cecchetti & Madhusudan Mohanty & Fabrizio Zampolli, 2011. "The real effects of debt," BIS Working Papers 352, Bank for International Settlements.
    7. Mr. Wolfgang Bergthaler & Mr. Kenneth H Kang & Ms. Yan Liu & Mr. Dermot Monaghan, 2015. "Tackling Small and Medium Enterprise Problem Loans in Europe," IMF Staff Discussion Notes 2015/004, International Monetary Fund.
    8. Ronald MacDonald & Luca Ricci, 2001. "PPP and the Balassa Samuelson Effect: the Role of the Distribution Sector," CESifo Working Paper Series 442, CESifo.
    9. Mr. Thierry Tressel & Mr. Shengzu Wang, 2014. "Rebalancing in the Euro Area and Cyclicality of Current Account Adjustments," IMF Working Papers 2014/130, International Monetary Fund.
    10. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
    11. Álvaro Pina & Ildeberta Abreu, 2012. "Portugal: Rebalancing the Economy and Returning to Growth Through Job Creation and Better Capital Allocation," OECD Economics Department Working Papers 994, OECD Publishing.
    12. Goldstein, Morris & Officer, Lawrence H, 1979. "New Measures of Prices and Productivity for Tradable and Nontradable Goods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 413-427, December.
    13. Wolfgang Bergthaler & Kenneth H Kang & Yan Liu & Dermot Monaghan, 2015. "Tackling Small and Medium Enterprise Problem Loans in Europe," IMF Staff Discussion Notes 15/04, International Monetary Fund.
    14. Morris Goldstein & Lawrence H. Officer, 1979. "New Measures Of Prices And Productivity For Tradable And Nontradable Goods," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 413-427, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Magalhaes, Manuela, 2020. "The impact of financial constraints on tradable and non-tradable R&D investments in Portugal," MPRA Paper 100348, University Library of Munich, Germany.
    2. Tiago Domingues & João Ferreira do Amaral & João Carlos Lopes, 2021. "Global value chains, value-added generation and structural change in EU core and periphery economies: An Input-Output approach," Working Papers REM 2021/0157, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philippe Frocrain & Pierre-Noël Giraud, 2017. "The evolution of tradable and non-tradable employment: evidence from France," Working Papers hal-01695159, HAL.
    2. Philipp Engler & Michael Fidora & Christian Thimann, 2009. "External Imbalances and the US Current Account: How Supply‐Side Changes Affect an Exchange Rate Adjustment," Review of International Economics, Wiley Blackwell, vol. 17(5), pages 927-941, November.
    3. Friesenbichler, Klaus S. & Glocker, Christian, 2019. "Tradability and productivity growth differentials across EU Member States," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 1-13.
    4. Philippe Frocrain & Pierre-Noël Giraud, 2019. "The Evolution of Tradable and Non Tradable Employment: Evidence from France," Post-Print hal-01981428, HAL.
    5. Deicy Cristiano & Anderson Grajales & Mario Ramos, 2011. "Clasificación de la economía colombiana entre actividades transables y no transables," Borradores de Economia 675, Banco de la Republica de Colombia.
    6. Tian, Mary, 2018. "Tradability of output, business cycles and asset prices," Journal of Financial Economics, Elsevier, vol. 128(1), pages 86-102.
    7. Manuela Nenna, 2001. "Price Level Convergence among Italian Cities: Any Role for the Harrod-Balassa-Samuelson Hypothesis?," Working Papers 64, Sapienza University of Rome, CIDEI.
    8. Jacqueline Dwyer & Philip Lowe, 1993. "Alternative Concepts of the Real Exchange Rate: A Reconciliation," RBA Research Discussion Papers rdp9309, Reserve Bank of Australia.
    9. Mary Tian, 2015. "Tradability of Output, Business Cycles, and Asset Prices," Finance and Economics Discussion Series 2015-3, Board of Governors of the Federal Reserve System (U.S.).
    10. Philippe Frocrain & Pierre-Noël Giraud, 2018. "The Evolution of Tradable and Non Tradable Employment: Evidence from France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 503-504, pages 97-107.
    11. International Monetary Fund, 2016. "Portugal: Ex Post Evaluation of Exceptional Access Under the 2011 Extended Arrangement-Press Release; Staff Report; and Authorities Views," IMF Staff Country Reports 2016/302, International Monetary Fund.
    12. Arnold Harberger, 1986. "Economic Adjustment and the Real Exchange Rate," NBER Chapters, in: Economic Adjustment and Exchange Rates in Developing Countries, pages 369-424, National Bureau of Economic Research, Inc.
    13. Emre Ünal, 2021. "Industrial growth models by input–output analysis and an institutional approach to the automotive industry in China and Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 18(1), pages 175-203, April.
    14. Pavel Kadochnikov, 2006. "An Analysis of Import Substitution in Russia after the 1998 Crisis," Research Paper Series, Gaidar Institute for Economic Policy, issue 95, pages 148-148.
    15. Nieto-Carrillo, Ernesto & Carreira, Carlos & Teixeira, Paulino, 2022. "Giving zombie firms a second chance: An assessment of the reform of the Portuguese insolvency framework," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 156-181.
    16. Masters, William A. & Ianchovichina, Elena, 1998. "Measuring exchange rate misalignment: Inflation differentials and domestic relative prices," World Development, Elsevier, vol. 26(3), pages 465-477, March.
    17. Ewelina Mruk & Inmaculada Aguiar-Díaz & Maria Victoria Ruiz-Mallorquí, 2019. "Use of formal insolvency procedure and judicial efficiency in Spain," European Journal of Law and Economics, Springer, vol. 47(3), pages 435-470, June.
    18. International Monetary Fund, 2015. "Italy: Selected Issues," IMF Staff Country Reports 2015/167, International Monetary Fund.
    19. Cardi, Olivier & Restout, Romain, 2015. "Imperfect mobility of labor across sectors: a reappraisal of the Balassa–Samuelson effect," Journal of International Economics, Elsevier, vol. 97(2), pages 249-265.
    20. Sophie Piton, 2017. "A European Disease? Non-tradable Inflation and Real Interest Rate Divergence," CESifo Economic Studies, CESifo, vol. 63(2), pages 210-234.

    More about this item

    Keywords

    Allocative Efficiency; Trade; Microeconomic Policy;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • E - Macroeconomics and Monetary Economics
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mde:wpaper:0060. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joana Almodovar (email available below). General contact details of provider: https://edirc.repec.org/data/geegvpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.