The Economic Theory and the Portuguese Manufactured Industry

Abstract

This work aims to compare the Keynesian theory, namely by the Verdoorn Law, the neoclassical theory, by the absolute convergence, and the geographic concentration, by the Rybczynski equation, explanations about the different manufactured industry of the Portuguese regions (NUTs II), for the period 1986-1994. The Verdoorn Law, is tested with the alternative specifications of Kaldor (1966. The absolute convergence is tested for the productivity. To analyze the geographic concentration, with Rybczynski equation, is tested the importance which the natural advantages and local resources are in the manufacturing industry location, in relation with the "spillovers" effects and industrial policies. --Verdoorn law,convergence theories,geographic concentration,panel data,manufactured industries,Portuguese regions