Agglomeration and Interregional Mobility of Labor in Portugal

The aim of this paper is to analyze the relationship between inter-industry, intra-industry and inter-regional clustering and demand for labor by companies in Portugal. Is expected at the outset that there is more demand for work where the agglomeration is greater. It should be noted, as a summary conclusion, the results are consistent with the theoretical developments of the New Economic Geography, namely the demand for labor is greater where firms are better able to cluster that is where transport costs are lower and where there is a strong links "backward and forward" and strong economies of agglomeration

Spatial Effects and Convergence Theory in the Portuguese Situation

This study analyses, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence (product per worker) in the economic sectors of NUTs III of mainland Portugal between 1995 and 2002. To analyse the data, Moran's I statistics is considered, and it is stated that productivity is subject to positive spatial autocorrelation (productivity develops in a similar manner to productivity in neighbouring regions), above all, in agriculture and services. Industry and the total of all sectors present indications that they are subject to positive spatial autocorrelation in productivity. On the other hand, it is stated that the indications of convergence, specifically bearing in mind the concept of absolute convergence, are greater in industry. Taking into account the estimation results, it is stated once again that the indications of convergence are greater in industry, and it can be seen that spatial spillover effects, spatial lag (capturing spatial autocorrelation through a spatially redundant dependent variable) and spatial error (capturing spatial autocorrelation through a spatially redundant error term), as well as human capital, condition the convergence of productivity in the various economic sectors of Portuguese region in the period under consideration (Martinho, 2011)

Geographic Concentration in Portugal and Regional Specific Factors

This paper pretends 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 1980 to 1999. Estimations are displayed with the model mentioned and for four different periods, namely 1980 to 1985, from 1986 to 1994, from 1980 to 1994 and from 1995 to 1999. The consideration of the various periods until 1994, aims to capture the effects of our entrance at the, in that time, EEC (European Economic Community) and the consideration of a period from 1995 is because the change in methodology for compiling statistical data taken from this time in Portugal. As a summary conclusion, noted that the location of manufacturing in Portugal is still mostly explained by specific factors, with a tendency to increase in some cases the explanation by these factors, having the effect "spillovers" and industrial policies little importance in this context

Sectoral Convergence in Output Per Worker Between Portuguese Regions

The aim of this paper is to present a further contribution to the analysis of absolute convergence (and), associated with the neoclassical theory, and conditional, associated with endogenous growth theory, of the sectoral productivity at regional level. Presenting some empirical evidence of absolute convergence of productivity for each of the economic sectors and industries in each of the regions of mainland Portugal (NUTS II and NUTS III) in the period 1986 to 1994 and from 1995 to 1999. The finest spatial unit NUTS III is only considered for each of the economic sectors in the period 1995 to 1999. They are also presented empirical evidence of conditional convergence of productivity, but only for each of the economic sectors of the NUTS II of Portugal, from 1995 to 1999. The structural variables used in the analysis of conditional convergence is the ratio of capital/output, the flow of goods/output and location ratio. The main conclusions should be noted that the signs of convergence are stronger in the first period than in the second and that convergence is conditional, especially in industry and in all sectors (1)(Martinho, 2011)

Regional Agglomeration in Portugal: A Linear Analysis

This work aims to study the Portuguese regional agglomeration process, using the linear form the New Economic Geography models that emphasize the importance of spatial factors (distance, costs of transport and communication) in explaining of the concentration of economic activity in certain locations. In a theoretical context, it is intended 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. As a summary conclusion, we can say which the agglomeration process shows some signs of concentration in Lisboa e Vale do Tejo (which is evidence of regional divergence in Portugal) and the productivity factor significantly improves the results that explain the regional clustering in Portugal (despite being ignored in the models of New Economic Geography)

Polarization Versus Agglomeration

The aim of this paper is to analyze the processes of polarization and agglomeration, to explain the mechanisms and causes of these phenomena in order to identify similarities and differences. As the main implication of this study should be noted that both process pretend to explain the concentration of economic activity and population in certain places, through cumulative phenomena, but with different perspectives, in other words, the polarization with a view of economic development and agglomeration with a perspective of space

The Verdoorn Law in the Portuguese Regions: A Panel Data Analysis

This work aims to test the Verdoorn Law, with the alternative specifications of (1)Kaldor (1966), for five regions (NUTS II) Portuguese from 1986 to 1994 and for the 28 NUTS III Portuguese in the period 1995 to 1999. Will, therefore, to analyze the existence of increasing returns to scale that characterize the phenomena of polarization with circular and cumulative causes and can explain the processes of regional divergence. It is intended to test, even in this work, the alternative interpretation of (2)Rowthorn (1975) 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 (primary and services sector), for each of the manufacturing industries operating in the Portuguese regions and for the total economy of each region (3)(Martinho, 2011)

Spatial Autocorrelation and Verdoorn Law in the Portuguese NUTs III

This study analyses, through cross-section estimation methods, the influence of spatial effects in productivity (product per worker), at economic sectors level of the NUTs III of mainland Portugal, from 1995 to 1999 and from 2000 to 2005 (taking in count the data availability and the Portuguese and European context), considering the Verdoorn relationship. From the analyses of the data, by using Moran I statistics, it is stated that productivity is subject to a positive spatial autocorrelation (productivity of each of the regions develops in a similar manner to each of the neighbouring regions), above all in services. The total sectors of all regional economy present, also, indicators of being subject to positive autocorrelation in productivity. Bearing in mind the results of estimations, it can been that the effects of spatial spillovers, spatial lags (measuring spatial autocorrelation through the spatially lagged dependent variable) and spatial error (measuring spatial autocorrelation through the spatially lagged error terms), influence the Verdoorn relationship when it is applied to the economic sectors of Portuguese regions. The results obtained for the two periods are different, as expected, and are better in second period, because, essentially, the European and national public supports (Martinho, 2011)

The Importance of Increasing Returns to Scale in the Process of Agglomeration in Portugal: A Non-linear Empirical Analysis

With this work we try to analyse the agglomeration process in the Portuguese regions, using the New Economic Geography models. In these models the base idea is that where has increasing returns to scale in the manufactured industry and low transport costs, there is agglomeration. Of referring, as summary conclusion, that with this work the existence of increasing returns to scale and low transport cost, in the Portuguese regions, was proven and as such the existence of agglomeration in Portugal