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Portuguese economic growth: A view on structural features, blockages and reforms

This book aims to contribute to the discussion about Portuguese economic growth, leveraging on a large set of past and ongoing analytical work, mostly carried out at Banco de Portugal. The project also benefited from multiple other contributions, notably from economists affiliated to national and international economic policy institutions and universities. The book takes a supply side approach, discussing aspects of Portuguese economic growth from the perspective of the production function. This implies focusing on the quantity and quality of inputs, the functioning of markets and the broad institutional setup. The book is organized along eight chapters, each one containing a small number of short sections. Each section formulates a research question relevant for understanding structural features, blockages and reforms with an impact on Portuguese economic growth.

 A view on structural features, blockages and reforms

Portuguese economic growth: A view on structural features, blockages and reforms

Oct. 2019
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32 anexos
List of contributors
List of contributors
Foreword
Foreword | Governor Carlos da Silva Costa
Introduction
Introduction | João Amador
1. Potential output and growth accounting
1.1. Potential output in Portugal and in the euro area: Where do we stand? | Cláudia Duarte, José R. Maria, Sharmin Sazedj
1.2. How have technological progress and efficiency developments contributed to Portuguese growth? | João Amador, Carlos Coimbra, António R. dos Santos
1.3. What is the role of demography and education on future Portuguese output growth? | Joana Garcia, Hugo Reis, João Amador
2. Human capital
2.1. Is it still worth investing in education? | Maria Manuel Campos, Hugo Reis
2.2. How has improvement in workers’ educational attainment impacted educational mismatches? | Ana Catarina Pimenta, Manuel Coutinho Pereira
2.3. What is the relative advantage of vocational education in the Portuguese labour market? | Joop Hartog, Pedro Raposo, Hugo Reis
2.4. What is the impact of human capital regional concentration on wages and capital returns? | Pedro Freitas
3. Labour market
3.1. How do firm dynamics and worker mobility influence real wage growth? | Sónia Félix, Pedro Portugal
3.2. How did the downward wage rigidity shape unemployment during the crisis? | Fernando Martins, Pedro Portugal
3.3. What did the reform of severance pay bring? | Fernando Martins
4. Management and organization of firms
4.1. What has the crisis shown about Portuguese top managers? | Sharmin Sazedj
4.2. Does a firm hiring an experienced manager improve its performance? | Giordano Mion, Luca David Opromolla, Alessandro Sforza
4.3. How important are organizational decisions in determining a firm’s productivity? | Lorenzo Caliendo, Giordano Mion, Luca David Opromolla, Esteban Rossi-Hansberg
5. Investment and financing
5.1. How important is access to finance for firms’ performance in a crisis? | Sudipto Karmakar
5.2. How important are borrowing constraints for Portuguese SMEs’ exit and investment decisions? | Luísa Farinha, Sónia Félix
5.3. Do bank credit shocks matter for firms’ investment decisions? | João Amador, Arne Nagengast
5.4. Is bank credit going to the most productive firms? | Nuno Azevedo, Márcio Mateus, Álvaro Pina
6. Product market
6.1. What do price-cost margins and worker’s bargaining power tell us about Portuguese markets? | Ricardo Pinheiro Alves, Carlos Figueira
6.2. Are zombie firms curbing the growth of viable firms? | Ana Fontoura Gouveira, Christian Osterhold
6.3. How important is resource reallocation for productivity growth? | Carlos Robalo Marques
6.4. Do firms’ export status influence the likelihood of survival? | Mónica Borges Simões, Paulo M. M. Rodrigues
7. Internationalization
7.1. How different are demand and supply factors in export-based internationalization strategies? | Paulo Júlio, José R. Maria
7.2. How did Portuguese exporters get through the crisis? | Paulo Soares Esteves, Miguel Portela, António Rua
7.3. How important is the role of entry and exit in international markets? | João Amador, Luca David Opromolla
7.4. How heterogeneous are Portuguese international traders of non-tourism services? | João Amador, Sónia Cabral, Birgitte Ringstad
7.5. How does tourism-related firm dynamics differ from other sectors? | Filipe B. Caires, Hugo Reis, Paulo M. M. Rodrigues
8. Regulatory costs
8.1. Which regulatory costs are associated with Portuguese firms’ productivity? | João Amador, Sónia Cabral, Birgitte Ringstad
8.2. What drives demand and productivity in economic justice? | Manuel Coutinho Pereira, Lara Wemans
8.3. What has changed in the duration of debt enforcement in Portugal? | Manuel Coutinho Pereira, Lara Wemans