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Portugal: a Paradox in Productivity

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  • Ricardo Pinheiro Alves

    () (Gabinete Estratégia e Estudos Ministério Economia / Office for Strategy and Studies - Ministério da Economia / Ministry of Economy)

Abstract

Portugal is experiencing a larger slowdown of productivity growth than the one occurring in advanced economies. This paper aims to help understanding why convergence in productivity levels is not happening by considering its main determinants. It presents a set of different reasons for this slowdown and divergence with developed economies since the mid-1990s that are associated with an increasing misallocation of capital, labour and skills both at a sectorial and firm level.

Suggested Citation

  • Ricardo Pinheiro Alves, 2017. "Portugal: a Paradox in Productivity," GEE Papers 0070, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jun 2017.
  • Handle: RePEc:mde:wpaper:0070
    as

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    File URL: http://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_70.pdf
    File Function: First version, 2017
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    References listed on IDEAS

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    1. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, July.
    2. Paulo Júlio & Ricardo Pinheiro–Alves & José Tavares, 2013. "Foreign direct investment and institutional reform: evidence and an application to Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 12(3), pages 215-250, December.
    3. Wolfgang Keller & Stephen R. Yeaple, 2009. "Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 821-831, November.
    4. Patrice Ollivaud & Yvan Guillemette & David Turner, 2016. "Links between weak investment and the slowdown in productivity and potential output growth across the OECD," OECD Economics Department Working Papers 1304, OECD Publishing.
    5. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    6. Pedro Lains, 2008. "The Portuguese Economy in the Irish Mirror, 1960–2004," Open Economies Review, Springer, vol. 19(5), pages 667-683, November.
    7. Dan Andrews & Chiara Criscuolo & Peter N. Gal, 2015. "Frontier Firms, Technology Diffusion and Public Policy: Micro Evidence from OECD Countries," OECD Productivity Working Papers 2, OECD Publishing.
    8. Hans Gersbach & Armin Schmutzler, 2003. "Endogenous Technological Spillovers: Causes and Consequences," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(2), pages 179-205, June.
    9. David Sondermann, 2014. "Productivity in the euro area: any evidence of convergence?," Empirical Economics, Springer, vol. 47(3), pages 999-1027, November.
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    More about this item

    Keywords

    Portugal; Productivity; Convergence;

    JEL classification:

    • H80 - Public Economics - - Miscellaneous Issues - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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