Thirlwall's law (Thirlwall 1979) considers that growth can be constrained by the balance of payments when the current account is in permanent deficit. The law focuses on external imbalances as impediments to growth and does not consider the case where internal imbalances (budget deficits or...

The aim of this paper is to explain regional convergence in Portugal, at Nuts III level, in terms of per capita income and productivity. In doing so, we employ an alternative estimation approach based on panel data analysis that allows for individual differences across regions, avoiding with...

The aim of this paper is twofold: in first place we want to ascertain if there is any difference in the convergence process between the 'Littoral' (coastal) and the 'Interior' (inland) areas in Portugal in terms of per capita income. In second place, we examine the relevance of Structural Funds...

Recently, Soukiazis E., Cerqueira P., and Antunes M. (2013) developed a model – hereafter the SCA model - that takes into account both internal and external imbalances and where relative prices are not neutral in the pace economic growth. The SCA model can be considered as an extension of the...