Are the portuguese regions converging to a single steady state?

Andraz, Jorge Miguel; Norte, Nélia

http://hdl.handle.net/10400.1/3860

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Authors

Andraz, Jorge Miguel

Norte, Nélia

Abstract(s)

This paper is concerned with examining the economic performance of the Portuguese regions Nuts III. In particular, it seeks to present empirical evidence about the degree of convergence in their economic performance since 1990 when regions became the recipients of the European Community Structural Funds. Panel data regressions are estimated and the results suggest structural differences among regions leading to the existence of different steady state levels of income. Moreover, regions are converging to different steady states at an annual rate of 2.15%. As a corollary, results suggest that national policies, while contributing to improving the country's living standards relative to the European average, might not have been able to achieve the economic cohesion of the country.