Zombie Companies in Portugal – The non-tradable sectors of Construction and Services

This paper studies the prevalence and economic consequences of zombie companies in Portugal, specifically in two major sectors of activity, construction and services. These sectors are less exposed to external competition and zombie companies may remain due to reduced competitive forces. Zombie companies are supported by easy credit access and low interest rates and would… Continue reading Zombie Companies in Portugal – The non-tradable sectors of Construction and Services

Fish processing in Portugal: An industry in expansion

This paper presents an analysis of developments in the Portuguese fish processing industry from the 1960s to the present as well as prospects for future expansion. In this period, Portugal has undergone tremendous political and macroeconomic changes. While Portugal used to be nearly self-sufficient in the supply of fish, the country has become a net… Continue reading Fish processing in Portugal: An industry in expansion

Does the stock market cause economic growth? Portuguese evidence of economic regime change

This research tests the relation between stock market and economic growth for Portugal using data from 1993 to 2011. Because Portugal is a small open economy traditionally dependent on bank financing, we also consider the relation between bank financing and economic growth. The empirical approach focuses on the study of the relation between stock market… Continue reading Does the stock market cause economic growth? Portuguese evidence of economic regime change

An economic analysis of the Portuguese fisheries sector 1960–2011

This paper undertakes an economic analysis of the Portuguese fisheries sector and fish markets for the period 1960–2011. In this period, the Portuguese economy underwent significant change as well as was subject to numerous external shocks. The main shocks include the revolution of 1974, substantial emigration as well as immigration, membership of the European Union… Continue reading An economic analysis of the Portuguese fisheries sector 1960–2011

Case Study: DBRS Sovereign Rating of Portugal. Analysis of Rating Methodology and Rating Decisions

This paper examines the DBRS sovereign credit rating methodology and its rating decisions on Portugal. The paper identifies country-specific risk factors and technical specifications that justify the agency’s issuance of Portugal’s investment-grade notation throughout the sovereign debt crisis – which preserved Portugal’s access to the ECB bond purchase program. Both qualitative and empirical findings show… Continue reading Case Study: DBRS Sovereign Rating of Portugal. Analysis of Rating Methodology and Rating Decisions

Drug decriminalization and the price of illicit drugs

One moderate alternative to the war on drugs is to follow Portugal’s lead and decriminalize all drug use while maintaining the illegality of drug trafficking. — Gary S. Becker and Kevin M. Murphy (2013) In the late 1980s and 1990s a growing population of intravenous heroin users became a major threat to public health in Portugal,… Continue reading Drug decriminalization and the price of illicit drugs

Portugal: A Paradox in Productivity

Portugal is less productive than advanced economies. Paradoxically, the recent improvement in areas such as human capital, investment in innovation and R&D or a more friendly business environment has yet to lead to convergence in productivity levels. The Portuguese labour productivity as a percentage of G7 countries peaked in 1993 at 63.4%, decreasing since then… Continue reading Portugal: A Paradox in Productivity