Application of Keynesian and convergence theories in Portugal. An alternative approach

Martinho, Vítor João Pereira Domingues (2011): Application of Keynesian and convergence theories in Portugal. An alternative approach.

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, even 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 (agriculture and services sectors) and for the total economy of each region. The aim of this paper is, also, to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the sectoral productivity at regional level.

• Item Type: MPRA Paper
• Language: English
• Keywords: polarization; convergence; Portuguese regions; linear models; panel data
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

References

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R.E. Rowthorn. What Remains of Kaldor Laws? Economic Journal, 85, 10-19 (1975).

P.J. Verdoorn. Fattori che Regolano lo Sviluppo Della Produttivita del Lavoro. L´Industria, 1, 3-10 (1949).

N. Islam. Growth Empirics : A Panel Data Approach. Quarterly Journal of Economics, 110, 1127-1170 (1995).

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V.J.P.D. Martinho. The Verdoorn law in the Portuguese regions: a panel data analysis. MPRA Paper 32186, University Library of Munich, Germany (2011a).

V.J.P.D. Martinho. Sectoral convergence in output per worker between Portuguese regions. MPRA Paper 32269, University Library of Munich, Germany (2011b).