  This study analyses, through cross-section estimation methods, the influence
of spatial effects and human capital in the conditional productivity
convergence (product per worker) in the economic sectors of NUTs III of
mainland Portugal between 1995 and 2002. To analyse the data, Moran's I
statistics is considered, and it is stated that productivity is subject to
positive spatial autocorrelation (productivity develops in a similar manner to
productivity in neighbouring regions), above all, in agriculture and services.
Industry and the total of all sectors present indications that they are subject
to positive spatial autocorrelation in productivity. On the other hand, it is
stated that the indications of convergence, specifically bearing in mind the
concept of absolute convergence, are greater in industry. Taking into account
the estimation results, it is stated once again that the indications of
convergence are greater in industry, and it can be seen that spatial spillover
effects, spatial lag (capturing spatial autocorrelation through a spatially
redundant dependent variable) and spatial error (capturing spatial
autocorrelation through a spatially redundant error term), as well as human
capital, condition the convergence of productivity in the various economic
sectors of Portuguese region in the period under consideration (Martinho,
2011).
