What said the economic theory about Portugal

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.