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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. Ourdoi:10.6084/m9.figshare.12932880.v1 fatcat:iv7crjsqtjcwraz34uniccnlme