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Economic Modelling

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e”> The aim of this study is to investigate whether openness, export shares or trade balances affect regional growth in Portu gal. Human capital is also considered as a conditional factor to growth, expressed by the rate of success in high school education. Thus, we analyse whether the combination of internat ional trade and human capital is relevant to explain regional growth in Portugal and how it affects the convergence process between regions. In the empirical analysis, interactio n terms are introduced to explore the existence of different performances between regions of the Littoral and the Interior. As an alternative to the traditional approachthat considers the population growth rate, we include the share of sectoral employment aiming to capturelabour specialisation in the main sectors of economic activity and measure its impact on regional growth.The empirical analysis estimates the conditional convergence model of the Barro’s type, applied to thePortuguese NUTS3 regions …

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