Where did the money go? Why did Southern and peripheral European countries fair so poorly during a period of large capital inflows from the rest of Europe?

Weak or even negative productivity growth is a major reason for the poor economic performance of most Southern and peripheral European countries, including Portugal, in the 2000s.  This weak, or even negative, productivity growth happened at the same time that the Eurozone became more financially integrated, which is something that was expected to improve resource… Continue reading Where did the money go? Why did Southern and peripheral European countries fair so poorly during a period of large capital inflows from the rest of Europe?

The best masters theses on the Portuguese Economy in 2018

The Bank of Portugal in collaboration with the Fundação Manuel dos Santos organizes every two years a competition to select the best masters theses written on the Portuguese Economy from across all higher education institutions in Portugal. At the 9.ª Conferência Desenvolvimento económico português no espaço europeu 16 theses were presented. The thesis “Estimating Gender Differences… Continue reading The best masters theses on the Portuguese Economy in 2018

Labor market effects of the Portuguese unemployment insurance reform

The Portuguese labor reform of 1999 increased the maximum duration of unemployment benefits only for workers in specific age brackets. Workers with ages outside of the affected brackets had no change in the maximum benefit duration. Workers between 30 and 34 years old, for example, had the maximum benefit duration extended from 15 months to… Continue reading Labor market effects of the Portuguese unemployment insurance reform

Migrant networks and the export performance of Portuguese firms

Fixed costs associated with learning about demand and setting up distribution networks are expected to be lower when there are more potential contacts in the destination market, suggesting a greater probability of market entry and larger export revenues. This paper matches historically-determined emigration stocks with detailed firm-level data from Portugal to examine the effect of… Continue reading Migrant networks and the export performance of Portuguese firms

Successful exporters learn about external demand and deliver on product quality

How and why firms become successful exporters? To answer this question, the paper examines the joint evolution of export revenue, and input and output prices over the firm’s life cycle. Using detailed micro data from the Portuguese manufacturing sector, the paper finds that export revenue tends to rise with experience in export destinations, and that successful firms… Continue reading Successful exporters learn about external demand and deliver on product quality

The effect of competition by Chinese exports in international markets on the Portuguese labour market

Chinese exports may affect a given country directly through intensifying competition in the domestic market, but also indirectly in foreign markets where firms from that country compete with Chinese exports. In fact, the large export market share gains of China in low-tech, low-skill products, like textiles, clothing, footwear, and electric appliances, were accompanied by losses… Continue reading The effect of competition by Chinese exports in international markets on the Portuguese labour market

Exchange Rate Shocks with the Brexit Referendum and Portuguese Exports

Understanding the effect of exchange rate movements on international trade is a major issue for economists and for policy-makers. Using a quasi-natural experimental evidence on the effects of exchange rate shocks on export prices, quantities and export participation, the paper examines the consequences of the large, sudden and unanticipated plunge in the British pound following… Continue reading Exchange Rate Shocks with the Brexit Referendum and Portuguese Exports