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- Title
The Fundamentals of the Portuguese Crisis.
- Authors
Andrade, João Sousa; Duarte, Adelaide
- Abstract
This paper analyses the fundamentals of the Portuguese crisis. The financial crisis of 2007 worsened and triggered the current Portuguese crisis. We argue that the main problem the economy is facing is its output stagnation due to a kind of Dutch disease that has created high and increasing levels of indebtedness, low and decreasing levels of saving and has reduced Portuguese competitiveness. Moreover, the existence of a dualist labour market and a new wave of emigration produce inefficiency, increasing unemployment of younger workers and the supply of human capital abroad funded by the Portuguese taxpayers. Governance problems such as poor public budget governance and lack of transparency and accountability are also at stake. These governance problems must be solved to allow the economy to return to its long-run growth path.
- Subjects
PORTUGAL; PORTUGUESE economy, 1974-; FINANCIAL crises; DUTCH disease (Economics); ECONOMIC competition; LABOR market
- Publication
Panoeconomicus, 2011, Vol 58, Issue 2, p195
- ISSN
1452-595X
- Publication type
Article
- DOI
10.2298/PAN1102195A