Economics at your fingertips  

Human capital and productivity growth in a services economy: Some insights from the Portuguese case

Marta Simões (), Maria Adelaide Duarte () and João Andrade ()

International Economics and Economic Policy, 2019, vol. 16, issue 3, No 4, 534 pages

Abstract: Abstract Has the Portuguese economy benefited from tertiarization in terms of aggregate productivity performance? Did human capital availability play a role in this expansion of the services sector? To answer these two research questions, we investigate the existence of causality among services sector expansion, human capital, and aggregate productivity for the period 1970–2006 in the Portuguese economy based on the estimation of VAR models and impulse response analysis. We distinguish between the contributions of five different services sub-sectors that can be broadly classified as either traditional personal services or modern progressive services. The evidence suggests bi-directional causality between services sub-sectors employment shares and aggregate productivity. Across services sub-sectors, community social and personal services, that include health care and education activities, seem to be the most influential sector, followed by finance, insurance, real estate and business services, making both a positive and lasting contribution to aggregate productivity. Although only indicative, this evidence points to the relatively low weight of modern progressive services sectors in Portugal, together with a relatively less important role for some traditional personal services sub-sectors that can be sources of human capital, as candidate explanations for the slowdown in aggregate productivity growth over the period under analysis. The causality analysis did not allow us to confirm the role of human capital in driving the expansion of services subsectors, although the impulse response analysis points to a positive impact on aggregate productivity and the expansion of finance, insurance, real estate and business services and community social and personal services.

Keywords: Traditional services; Modern services; Human capital; Productivity growth; Portugal; VAR; GIR (search for similar items in EconPapers)
JEL-codes: L80 O14 O15 O52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-019-00439-0

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-04-13
Handle: RePEc:kap:iecepo:v:16:y:2019:i:3:d:10.1007_s10368-019-00439-0