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The economic theory and the Portuguese manufactured industry. Another approach


  • Martinho, Vítor João Pereira Domingues


The aim of this paper is to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the manufactured industry productivity at regional level and for the period from 1995 to 1999 (1)(Martinho, 2011a). This work aims, also, to test the Verdoorn Law, with the alternative specifications of (2)Kaldor (1966), for the five Portuguese regions (NUTS II), from 1995 to 1999. It is intended to test, yet in this work, the alternative interpretation of (3)Rowthorn (1975) about the Verdoorn's Law for the same regions and period (4)(Martinho, 2011b). This paper pretends, yet, to analyze the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. To this, we estimate the Rybczynski equation matrix for the various manufacturing industries in Portugal, at regional level (NUTS II) and for the period 1995 to 1999 (5)(Martinho, 2011c).

Suggested Citation

  • Martinho, Vítor João Pereira Domingues, 2011. "The economic theory and the Portuguese manufactured industry. Another approach," MPRA Paper 33492, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33492

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    References listed on IDEAS

    1. Vitor Joao Pereira Domingues Martinho, 2011. "Sectoral Convergence in Output Per Worker Between Portuguese Regions," Papers 1110.5552,
    2. Vitor Joao Pereira Domingues Martinho, 2011. "The Verdoorn Law in the Portuguese Regions: A Panel Data Analysis," Papers 1110.5544,
    3. Martinho, Vítor João Pereira Domingues, 2011. "Geographic concentration in Portugal and regional specific factors," MPRA Paper 32317, University Library of Munich, Germany.
    4. Kim, Sukkoo, 1999. "Regions, resources, and economic geography: Sources of U.S. regional comparative advantage, 1880-1987," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 1-32, January.
    5. A. P. Thirlwall, 2007. "Regional Problems are "Balance-of-Payments" Problems," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 89-95.
    6. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
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    More about this item


    Verdoorn law; convergence theories; geographic concentration; panel data; manufactured industries; Portuguese regions;

    JEL classification:

    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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