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What said the economic theory about Portugal

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  • Martinho, Vítor João Pereira Domingues

Abstract

This work aims to test the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for five Portuguese regions (NUTS II) from 1986 to 1994. It is intended to test, also in this work, the alternative interpretation of (2)Rowthorn (1975) of the Verdoorn's Law for the same regions and periods. The results of this work will be complemented with estimates of these relationships to other sectors of the economy than the industry and for the total economy of each region. This work aims, yet, to study the Portuguese regional agglomeration process, using the linear form of the New Economic Geography models. In a theoretical context, it is intended, also, to explain the complementarily of clustering models, associated with the New Economic Geography, and polarization associated with the Keynesian tradition, describing the mechanisms by which these processes are based. The aim of this paper is, yet, to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the sectoral productivity at regional level. Presenting some empirical evidence of absolute convergence of productivity for each of the economic sectors in each of the regions of mainland Portugal (NUTS II) in the period 1986 to 1994.

Suggested Citation

  • Martinho, Vítor João Pereira Domingues, 2011. "What said the economic theory about Portugal," MPRA Paper 33021, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33021
    as

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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Vitor Joao Pereira Domingues Martinho, 2011. "Sectoral Convergence in Output Per Worker Between Portuguese Regions," Papers 1110.5552, arXiv.org.
    3. Vitor Joao Pereira Domingues Martinho, 2011. "The Verdoorn Law in the Portuguese Regions: A Panel Data Analysis," Papers 1110.5544, arXiv.org.
    4. Vitor Joao Pereira Domingues Martinho, 2011. "Regional Agglomeration in Portugal: A Linear Analysis," Papers 1110.5559, arXiv.org.
    5. Hanson, Gordon H., 1998. "Regional adjustment to trade liberalization," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 419-444, July.
    6. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    agglomeration; polarization; convergence; Portuguese regions; panel data;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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