Asymmetric regional dynamics in the Portuguese economy: debt, openness and local revenues

09/18/2020

Autores

Fernando Alexandre
Hélder Costa
Miguel Portela

JournalRegional Studies

IF = 3.312
Quartil = 01

Keywords

Regional economic convergenceresiliencedebtopenness to tradefiscal decentralizationinternational financial crisis

Abstract

Regional convergence stands out in the adjustment of the Portuguese economy that followed the international financial crisis. This outcome contrasts with increasing regional inequality in other European countries. We investigate the role of regional indebtedness, openness to trade and local fiscal autonomy in regions’ economic performance. Using a novel database, we contribute to a better understanding of the linkages between macroeconomic imbalances and regional economic dynamics. Our estimates suggest that regions’ indebtedness had a negative impact on economic growth. On the other hand, openness to trade and fiscal decentralization had a positive impact on economic growth.

Catarina Magalhães

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