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What said the new economic geography about Portugal? An alternative approach

  • Martinho, Vítor João Pereira Domingues

With this work we try to analyse the agglomeration process in Portugal, using the New Economic Geography models, in a linear and in a non linear way. In a non linear way, of referring, as summary conclusion, that with this work the existence of increasing returns to scale and low transport cost, in the Portuguese regions, was proven and, because this, the existence of agglomeration in Portugal. We pretend, also, in a linear way to explain the complementarily of clustering models, associated with the New Economic Geography, and polarization associated with the Keynesian tradition. As a summary conclusion, we can say which the agglomeration process shows some signs of concentration in Lisboa e Vale do Tejo and the productivity factor significantly improves the results that explain the regional clustering in Portugal. The aim of this paper is to analyze, yet, the relationship between the regional industry clustering and the demand for labor by companies in Portugal. Again, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32795.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32795
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  1. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  2. Martinho, Vítor João Pereira Domingues, 2011. "Regional agglomeration in Portugal: a linear analysis," MPRA Paper 32337, University Library of Munich, Germany.
  3. Martinho, Vítor João Pereira Domingues, 2011. "Agglomeration and interregional mobility of labor in Portugal," MPRA Paper 32203, University Library of Munich, Germany.
  4. Vitor Joao Pereira Domingues Martinho, 2011. "The Importance of Increasing Returns to Scale in the Process of Agglomeration in Portugal: A Non-linear Empirical Analysis," Papers 1110.5538, arXiv.org.
  5. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
  6. Martinho, Vítor João Pereira Domingues, 2011. "What said the new economic geography about Portugal?," MPRA Paper 32609, University Library of Munich, Germany.
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