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

Fernando Alexandre, Hélder Costa, Miguel Portela, Miguel Rodrigues
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
more » ... amics. 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.
doi:10.6084/m9.figshare.12932880.v1 fatcat:iv7crjsqtjcwraz34uniccnlme