1) This study analyzes spatial effects and conditional convergence theory at the parish level in mainland Portugal from 1991-2001. 2) Statistical analysis shows some positive spatial autocorrelation of product growth, with high-high autocorrelation in coastal parishes and low-low autocorrelation in inland parishes. 3) Estimates using OLS and maximum likelihood methods indicate that when spatial spillover effects are considered, there are indications that spatial factors condition convergence of parish productivity over this period.