Application of convergence theories and new economic geography in Portugal. An alternative analysis

Abstract

The aim of this paper is 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. This work aims, also, to study the Portuguese regional agglomeration process (NUTs II), 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.convergence; agglomeration; Portuguese regions; linear models panel data