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THE CONVERGENCE THEORIES AND THE MANUFACTURED
                   INDUSTRY IN PORTUGAL
                                       Vitor João Pereira Domingues Martinho

                                   Unidade de I&D do Instituto Politécnico de Viseu
                                        Av. Cor. José Maria Vale de Andrade
                                                 Campus Politécnico
                                                  3504 - 510 Viseu
                                                   (PORTUGAL)
                                          e-mail: vdmartinho@esav.ipv.pt


         ABSTRACT

         The aim of this paper is to present a further contribution to the analysis of absolute convergence,
associated with the neoclassical theory, of the manufactured industry productivity at regional level and for the
periods from 1986 to 1994 and from 1995 to 1999. The main conclusions that should be noted is which the signs
of convergence different between the several manufactured industries.

         Keywords: convergence theories; panel data; manufactured industry; Portuguese regions

         1. EMPIRICAL EVIDENCE OF ABSOLUTE CONVERGENCE, PANEL DATA

         The purpose of this part of the work is to analyze the absolute convergence of output per worker (as a
"proxy" of labor productivity), with the following equation ((1)Islam, 1995, based on the (2)Solow model, 1956):


          ln Pit  c  b ln Pi ,t 1   it                                                          (1)

        Table 1 presents the results for the absolute convergence of output per worker, in the estimations
obtained for each of the manufactured industry of NUTS II, from 1986 to 1994 (3)(Martinho, 2011).
        The convergence results obtained are statistically satisfactory for all manufacturing industries of NUTS II.

  Table 1: Analysis of convergence in productivity for each of the manufacturing industries at the five NUTS II of
                                      Portugal, for the period 1986 to 1994
Metals industry
Method        Const.    D1        D2           D3        D4        D5        Coef.      T.C.     DW         R2      G.L.
              0.190                                                          -0.024
Pooling                                                                                 -0.024   1.646      0.002   30
              (0.190)                                                        (-0.241)
                        2.171**   2.143**      2.161**   2.752**             -0.239**
LSDV                                                               ---                  -0.273   1.759      0.198   27
                        (1.769)   (1.753)      (1.733)   (1.988)             (-1.869)
              0.407                                                          -0.046
GLS                                                                                     -0.047   1.650      0.007   30
              (0.394)                                                        (-0.445)
MInerals industry
Method        Const.    D1        D2           D3        D4        D5        Coef.      T.C.     DW         R2      G.L.
              0.738                                                          -0.085
Pooling                                                                                 -0.089   1.935      0.025   38
              (0.903)                                                        (-0.989)
                        1.884*    1.970*       2.004*    1.926*    1.731**   -0.208*
LSDV                                                                                    -0.233   2.172      0.189   34
                        (2.051)   (2.112)      (2.104)   (2.042)   (1.930)   (-2.129)
             0.967                                                           -0.109
GLS                                                                                     -0.115   1.966      0.039   38
             (1.162)                                                         (-1.246)
Chemical industry
Method       Const.     D1        D2           D3        D4        D5        Coef.      T.C.     DW         R2      G.L.
             2.312**                                                         -0.225**
Pooling                                                                                 -0.255   2.017      0.104   34
             (1.992)                                                         (-1.984)
                        6.104*    6.348*       6.381*    6.664*    6.254*    -0.621*
LSDV                                                                                    -0.970   1.959      0.325   30
                        (3.750)   (3.778)      (3.774)   (3.778)   (3.777)   (-3.769)
              2.038**                                                        -0.198**
GLS                                                                                     -0.221   2.034      0.089   34
              (1.836)                                                        (-1.826)
Electric goods industry
Method        Const. D1           D2           D3        D4        D5        Coef.      T.C.     DW         R2      G.L.
              0.781                                                          -0.083
Pooling                                                                                 -0.087   1.403      0.016   38
              (0.789)                                                        (-0.784)
                        3.634*    3.552*       3.673*    3.636*    3.429*    -0.381*
LSDV                                                                                    -0.480   1.259      0.167   34
                        (2.363)   (2.360)      (2.362)   (2.376)   (2.324)   (-2.355)
              0.242                                                          -0.025
GLS                                                                                     -0.025   1.438      0.002   38
              (0.285)                                                        (-0.279)
Transport equipments industry



                                                               1
Method        Const.     D1        D2        D3         D4             D5         Coef.      T.C.          DW           R2           G.L.
              4.460*                                                              -0.464*
Pooling                                                                                      -0.624        2.258        0.206        38
              (3.110)                                                             (-3.136)
                         8.061*    8.526*    8.614*     8.696*         8.077*     -0.871*
LSDV                                                                                         -2.048        2.049        0.429        34
                         (4.948)   (5.007)   (4.986)    (4.998)        (4.961)    (-5.014)
              5.735*                                                              -0.596*
GLS                                                                                          -0.906        2.159        0.276        38
              (3.780)                                                             (-3.807)
Food industry
Method        Const.     D1        D2        D3         D4             D5         Coef.      T.C.          DW           R2           G.L.
              0.314                                                               -0.027
Pooling                                                                                      -0.027        1.858        0.005        38
              (0.515)                                                             (-0.443)
                         2.841*    2.777*    2.899*     2.617*         2.593*     -0.274*
LSDV                                                                                         -0.320        1.786        0.198        34
                         (2.555)   (2.525)   (2.508)    (2.471)        (2.470)    (-2.469)
               0.090                                                              -0.005
GLS                                                                                          -0.005        1.851        0.001        38
               (0.166)                                                            (-0.085)
Textile industry
Method         Const.    D1        D2        D3         D4             D5         Coef.      T.C.          DW           R2           G.L.
               4.276*                                                             -0.462*
Pooling                                                                                      -0.620        1.836        0.388        34
               (4.639)                                                            (-4.645)
                         5.556*    5.487*    5.506*     5.561*         5.350*     -0.595*
LSDV                                                                                         -0.904        1.816        0.431        30
                         (4.288)   (4.276)   (4.272)    (4.253)        (4.431)    (-4.298)
              3.212*                                                              -0.347*
GLS                                                                                          -0.426        1.848        0.542        34
              (6.336)                                                             (-6.344)
Paper industry
Method        Const.     D1        D2        D3         D4             D5         Coef.      T.C.          DW           R2           G.L.
              2.625*                                                              -0.271*
Pooling                                                                                      -0.316        1.534        0.128        38
              (2.332)                                                             (-2.366)
                         3.703*    3.847*    3.837*     3.684*         3.521*     -0.382*
LSDV                                                                                         -0.481        1.516        0.196        34
                         (2.803)   (2.840)   (2.813)    (2.812)        (2.782)    (-2.852)
              1.939**                                                             -0.201**
GLS                                                                                          -0.224        1.556        0.089        38
              (1.888)                                                             (-1.924)
Several industry
Method        Const.     D1        D2        D3         D4             D5         Coef.      T.C.          DW           R2           G.L.
              5.518*                                                              -0.605*
Pooling                                                                                      -0.929        2.121        0.297        38
              (4.004)                                                             (-4.004)
                         7.802*    7.719*    7.876*     7.548*         7.660*     -0.847*
LSDV                                                                                         -1.877        2.024        0.428        34
                         (5.036)   (5.022)   (5.033)    (5.023)        (5.018)    (-5.032)
              6.053*                                                              -0.664*
GLS                                                                                          -1.091        2.081        0.328        38
              (4.308)                                                             (-4.309)

         Table 2 shows results also for each of the manufacturing industries of the NUTS II of Portugal, but now
for the period 1995 to 1999.

  Table 2: Analysis of convergence in productivity for each of the manufacturing industries at the five NUTS II of
                                      Portugal, for the period 1995 to 1999
Metals industry
Method      Const.       D1        D2         D3             D4             D5        Coef.         T.C.        DW           R2       G.L.
            1.108*                                                                    -0.111*
Pooling                                                                                             -0.118      2.457        0.384    18
            (3.591)                                                                   (-3.353)
                         1.476     1.496      1.503          1.451          1.459     -0.151
LSDV                                                                                                -0.164      2.424        0.416    14
                         (1.143)   (1.183)    (1.129)        (1.186)        (1.233)   (-1.115)
             1.084*                                                                   -0.108*
GLS                                                                                                 -0.114      2.176        0.724    18
             (7.366)                                                                  (-6.866)
Minerals industry
Method       Const.      D1        D2         D3             D4             D5        Coef.         T.C.        DW           R2       G.L.
             -0.455                                                                   0.052
Pooling                                                                                             0.051       1.601        0.099    18
             (-1.236)                                                                 (1.409)
                         2.158*    2.280*     2.287*         2.194*         2.417*    -0.221*
LSDV                                                                                                -0.250      1.359        0.567    14
                         (2.222)   (2.265)    (2.227)        (2.248)        (2.306)   (-2.192)
            -0.356                                                                    0.042
GLS                                                                                                 0.041       1.628        0.053    18
            (-0.854)                                                                  (1.007)
Chemical industry
Method      Const.       D1        D2         D3             D4             D5        Coef.         T.C.        DW           R2       G.L.
            1.236                                                                     -0.115
Pooling                                                                                             -0.122      1.049        0.049    18
            (1.026)                                                                   (-0.966)
                         5.320*    5.281*     5.447*         5.858*         5.072*    -0.525*
LSDV                                                                                                -0.744      2.432        0.702    14
                         (4.493)   (4.452)    (4.449)        (4.711)        (4.501)   (-4.470)
             3.136*                                                                   -0.302*
GLS                                                                                                 -0.360      1.174        0.254    18
             (2.532)                                                                  (-2.477)
Electric goods industry
Method       Const.     D1         D2         D3             D4             D5        Coef.         T.C.        DW           R2       G.L.




                                                                  2
1.936                                                            -0.196
Pooling                                                                                  -0.218   1.945   0.082   18
            (1.289)                                                          (-1.271)
                      4.729      4.775      4.818      4.590      4.671      -0.482
LSDV                                                                                     -0.658   2.038   0.342   14
                      (1.504)    (1.507)    (1.490)    (1.463)    (1.519)    (-1.488)
             2.075                                                           -0.211
GLS                                                                                      -0.237   1.976   0.084   18
             (1.299)                                                         (-1.283)
Transport equipments industry
Method       Const.   D1         D2         D3         D4         D5         Coef.       T.C.     DW      R2      G.L.
             2.429*                                                          -0.237*
Pooling                                                                                  -0.270   1.837   0.209   18
             (2.264)                                                         (-2.179)
                      8.626*     8.647*     9.051*     8.537*     8.356*     -0.867*
LSDV                                                                                     -2.017   2.000   0.896   14
                      (10.922)   (10.973)   (10.924)   (10.917)   (10.866)   (-10.811)
             3.507*                                                          -0.346*
GLS                                                                                      -0.425   1.649   0.326   18
             (3.025)                                                         (-2.947)
Food industry
Method       Const.   D1         D2         D3         D4         D5         Coef.       T.C.     DW      R2      G.L.
             0.873                                                           -0.082
Pooling                                                                                  -0.086   2.921   0.105   18
             (1.619)                                                         (-1.453)
                      -0.516     -0.521     -0.532     -0.425     -0.435     0.060
LSDV                                                                                     0.058    2.230   0.208   14
                      (-0.300)   (-0.308)   (-0.304)   (-0.259)   (-0.268)   (0.341)
             1.027*                                                          -0.098*
GLS                                                                                      -0.103   2.251   0.445   18
             (4.163)                                                         (-3.800)
Textile industry
Method       Const.   D1         D2         D3         D4         D5         Coef.       T.C.     DW      R2      G.L.
             0.788**                                                         -0.080**
Pooling                                                                                  -0.083   1.902   0.165   18
             (2.048)                                                         (-1.882)
                      0.514      0.525      0.515      0.522      0.541      -0.051
LSDV                                                                                     -0.052   1.919   0.167   14
                      (0.261)    (0.270)    (0.262)    (0.272)    (0.301)    (-0.239)
             0.802*                                                          -0.081*
GLS                                                                                      -0.085   1.719   0.950   18
             (20.052)                                                        (-18.461)
Paper industry
Method       Const.   D1         D2         D3         D4         D5         Coef.       T.C.     DW      R2      G.L.
             0.735                                                           -0.073
Pooling                                                                                  -0.076   2.341   0.107   18
             (1.524)                                                         (-1.471)
                      5.201      5.454      5.410      5.053      4.970      -0.533
LSDV                                                                                     -0.761   1.939   0.227   14
                      (1.479)    (1.462)    (1.467)    (1.470)    (1.486)    (-1.465)
             0.654*                                                          -0.064*
GLS                                                                                      -0.066   2.185   0.362   18
             (3.329)                                                         (-3.198)
Several industry
Method       Const.   D1         D2         D3         D4         D5         Coef.       T.C.     DW      R2      G.L.
             -0.338                                                          0.042
Pooling                                                                                  0.041    2.651   0.015   18
             (-0.463)                                                        (0.531)
                      3.734**    3.883**    3.940**    3.817**    3.647**    -0.402**
LSDV                                                                                     -0.514   2.905   0.303   14
                      (1.949)    (1.962)    (1.966)    (1.967)    (1.934)    (-1.930)
             -0.904*                                                         0.102*
GLS                                                                                      0.097    1.922   0.471   18
             (-3.791)                                                        (4.003)


          2. CONCLUSIONS

         The signs of absolute convergence are different from one manufactured industries to another, but there
is a curious results for the equipment transport industry, because present strong evidence of absolute
convergence and we know that this industry is a dynamic sector. In another hand we have the textile industry that
we expect find strong signs of absolute convergence, because we know this is a sector with weak dynamics, but
we only see some evidence of convergence in the first period.

          3. REFERENCES

1. N. Islam. Growth Empirics : A Panel Data Approach. Quarterly Journal of Economics, 110, 1127-1170 (1995).
2. R. Solow. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics (1956).
7. V.J.P.D. Martinho. Sectoral convergence in output per worker between Portuguese regions. MPRA Paper
32269, University Library of Munich, Germany (2011).




                                                            3

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THE CONVERGENCE THEORIES AND THE MANUFACTURED

  • 1. THE CONVERGENCE THEORIES AND THE MANUFACTURED INDUSTRY IN PORTUGAL Vitor João Pereira Domingues Martinho Unidade de I&D do Instituto Politécnico de Viseu Av. Cor. José Maria Vale de Andrade Campus Politécnico 3504 - 510 Viseu (PORTUGAL) e-mail: vdmartinho@esav.ipv.pt ABSTRACT The aim of this paper is to present a further contribution to the analysis of absolute convergence, associated with the neoclassical theory, of the manufactured industry productivity at regional level and for the periods from 1986 to 1994 and from 1995 to 1999. The main conclusions that should be noted is which the signs of convergence different between the several manufactured industries. Keywords: convergence theories; panel data; manufactured industry; Portuguese regions 1. EMPIRICAL EVIDENCE OF ABSOLUTE CONVERGENCE, PANEL DATA The purpose of this part of the work is to analyze the absolute convergence of output per worker (as a "proxy" of labor productivity), with the following equation ((1)Islam, 1995, based on the (2)Solow model, 1956):  ln Pit  c  b ln Pi ,t 1   it (1) Table 1 presents the results for the absolute convergence of output per worker, in the estimations obtained for each of the manufactured industry of NUTS II, from 1986 to 1994 (3)(Martinho, 2011). The convergence results obtained are statistically satisfactory for all manufacturing industries of NUTS II. Table 1: Analysis of convergence in productivity for each of the manufacturing industries at the five NUTS II of Portugal, for the period 1986 to 1994 Metals industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.190 -0.024 Pooling -0.024 1.646 0.002 30 (0.190) (-0.241) 2.171** 2.143** 2.161** 2.752** -0.239** LSDV --- -0.273 1.759 0.198 27 (1.769) (1.753) (1.733) (1.988) (-1.869) 0.407 -0.046 GLS -0.047 1.650 0.007 30 (0.394) (-0.445) MInerals industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.738 -0.085 Pooling -0.089 1.935 0.025 38 (0.903) (-0.989) 1.884* 1.970* 2.004* 1.926* 1.731** -0.208* LSDV -0.233 2.172 0.189 34 (2.051) (2.112) (2.104) (2.042) (1.930) (-2.129) 0.967 -0.109 GLS -0.115 1.966 0.039 38 (1.162) (-1.246) Chemical industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 2.312** -0.225** Pooling -0.255 2.017 0.104 34 (1.992) (-1.984) 6.104* 6.348* 6.381* 6.664* 6.254* -0.621* LSDV -0.970 1.959 0.325 30 (3.750) (3.778) (3.774) (3.778) (3.777) (-3.769) 2.038** -0.198** GLS -0.221 2.034 0.089 34 (1.836) (-1.826) Electric goods industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.781 -0.083 Pooling -0.087 1.403 0.016 38 (0.789) (-0.784) 3.634* 3.552* 3.673* 3.636* 3.429* -0.381* LSDV -0.480 1.259 0.167 34 (2.363) (2.360) (2.362) (2.376) (2.324) (-2.355) 0.242 -0.025 GLS -0.025 1.438 0.002 38 (0.285) (-0.279) Transport equipments industry 1
  • 2. Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 4.460* -0.464* Pooling -0.624 2.258 0.206 38 (3.110) (-3.136) 8.061* 8.526* 8.614* 8.696* 8.077* -0.871* LSDV -2.048 2.049 0.429 34 (4.948) (5.007) (4.986) (4.998) (4.961) (-5.014) 5.735* -0.596* GLS -0.906 2.159 0.276 38 (3.780) (-3.807) Food industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.314 -0.027 Pooling -0.027 1.858 0.005 38 (0.515) (-0.443) 2.841* 2.777* 2.899* 2.617* 2.593* -0.274* LSDV -0.320 1.786 0.198 34 (2.555) (2.525) (2.508) (2.471) (2.470) (-2.469) 0.090 -0.005 GLS -0.005 1.851 0.001 38 (0.166) (-0.085) Textile industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 4.276* -0.462* Pooling -0.620 1.836 0.388 34 (4.639) (-4.645) 5.556* 5.487* 5.506* 5.561* 5.350* -0.595* LSDV -0.904 1.816 0.431 30 (4.288) (4.276) (4.272) (4.253) (4.431) (-4.298) 3.212* -0.347* GLS -0.426 1.848 0.542 34 (6.336) (-6.344) Paper industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 2.625* -0.271* Pooling -0.316 1.534 0.128 38 (2.332) (-2.366) 3.703* 3.847* 3.837* 3.684* 3.521* -0.382* LSDV -0.481 1.516 0.196 34 (2.803) (2.840) (2.813) (2.812) (2.782) (-2.852) 1.939** -0.201** GLS -0.224 1.556 0.089 38 (1.888) (-1.924) Several industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 5.518* -0.605* Pooling -0.929 2.121 0.297 38 (4.004) (-4.004) 7.802* 7.719* 7.876* 7.548* 7.660* -0.847* LSDV -1.877 2.024 0.428 34 (5.036) (5.022) (5.033) (5.023) (5.018) (-5.032) 6.053* -0.664* GLS -1.091 2.081 0.328 38 (4.308) (-4.309) Table 2 shows results also for each of the manufacturing industries of the NUTS II of Portugal, but now for the period 1995 to 1999. Table 2: Analysis of convergence in productivity for each of the manufacturing industries at the five NUTS II of Portugal, for the period 1995 to 1999 Metals industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 1.108* -0.111* Pooling -0.118 2.457 0.384 18 (3.591) (-3.353) 1.476 1.496 1.503 1.451 1.459 -0.151 LSDV -0.164 2.424 0.416 14 (1.143) (1.183) (1.129) (1.186) (1.233) (-1.115) 1.084* -0.108* GLS -0.114 2.176 0.724 18 (7.366) (-6.866) Minerals industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. -0.455 0.052 Pooling 0.051 1.601 0.099 18 (-1.236) (1.409) 2.158* 2.280* 2.287* 2.194* 2.417* -0.221* LSDV -0.250 1.359 0.567 14 (2.222) (2.265) (2.227) (2.248) (2.306) (-2.192) -0.356 0.042 GLS 0.041 1.628 0.053 18 (-0.854) (1.007) Chemical industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 1.236 -0.115 Pooling -0.122 1.049 0.049 18 (1.026) (-0.966) 5.320* 5.281* 5.447* 5.858* 5.072* -0.525* LSDV -0.744 2.432 0.702 14 (4.493) (4.452) (4.449) (4.711) (4.501) (-4.470) 3.136* -0.302* GLS -0.360 1.174 0.254 18 (2.532) (-2.477) Electric goods industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 2
  • 3. 1.936 -0.196 Pooling -0.218 1.945 0.082 18 (1.289) (-1.271) 4.729 4.775 4.818 4.590 4.671 -0.482 LSDV -0.658 2.038 0.342 14 (1.504) (1.507) (1.490) (1.463) (1.519) (-1.488) 2.075 -0.211 GLS -0.237 1.976 0.084 18 (1.299) (-1.283) Transport equipments industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 2.429* -0.237* Pooling -0.270 1.837 0.209 18 (2.264) (-2.179) 8.626* 8.647* 9.051* 8.537* 8.356* -0.867* LSDV -2.017 2.000 0.896 14 (10.922) (10.973) (10.924) (10.917) (10.866) (-10.811) 3.507* -0.346* GLS -0.425 1.649 0.326 18 (3.025) (-2.947) Food industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.873 -0.082 Pooling -0.086 2.921 0.105 18 (1.619) (-1.453) -0.516 -0.521 -0.532 -0.425 -0.435 0.060 LSDV 0.058 2.230 0.208 14 (-0.300) (-0.308) (-0.304) (-0.259) (-0.268) (0.341) 1.027* -0.098* GLS -0.103 2.251 0.445 18 (4.163) (-3.800) Textile industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.788** -0.080** Pooling -0.083 1.902 0.165 18 (2.048) (-1.882) 0.514 0.525 0.515 0.522 0.541 -0.051 LSDV -0.052 1.919 0.167 14 (0.261) (0.270) (0.262) (0.272) (0.301) (-0.239) 0.802* -0.081* GLS -0.085 1.719 0.950 18 (20.052) (-18.461) Paper industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. 0.735 -0.073 Pooling -0.076 2.341 0.107 18 (1.524) (-1.471) 5.201 5.454 5.410 5.053 4.970 -0.533 LSDV -0.761 1.939 0.227 14 (1.479) (1.462) (1.467) (1.470) (1.486) (-1.465) 0.654* -0.064* GLS -0.066 2.185 0.362 18 (3.329) (-3.198) Several industry Method Const. D1 D2 D3 D4 D5 Coef. T.C. DW R2 G.L. -0.338 0.042 Pooling 0.041 2.651 0.015 18 (-0.463) (0.531) 3.734** 3.883** 3.940** 3.817** 3.647** -0.402** LSDV -0.514 2.905 0.303 14 (1.949) (1.962) (1.966) (1.967) (1.934) (-1.930) -0.904* 0.102* GLS 0.097 1.922 0.471 18 (-3.791) (4.003) 2. CONCLUSIONS The signs of absolute convergence are different from one manufactured industries to another, but there is a curious results for the equipment transport industry, because present strong evidence of absolute convergence and we know that this industry is a dynamic sector. In another hand we have the textile industry that we expect find strong signs of absolute convergence, because we know this is a sector with weak dynamics, but we only see some evidence of convergence in the first period. 3. REFERENCES 1. N. Islam. Growth Empirics : A Panel Data Approach. Quarterly Journal of Economics, 110, 1127-1170 (1995). 2. R. Solow. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics (1956). 7. V.J.P.D. Martinho. Sectoral convergence in output per worker between Portuguese regions. MPRA Paper 32269, University Library of Munich, Germany (2011). 3