  This paper pretends to analyze the importance which the natural advantages
and local resources are in the manufacturing industry location, in relation
with the "spillovers" effects and industrial policies. To this, we estimate the
Rybczynski equation matrix for the various manufacturing industries in
Portugal, at regional level (NUTS II) and for the period 1980 to 1999.
Estimations are displayed with the model mentioned and for four different
periods, namely 1980 to 1985, from 1986 to 1994, from 1980 to 1994 and from
1995 to 1999. The consideration of the various periods until 1994, aims to
capture the effects of our entrance at the, in that time, EEC (European
Economic Community) and the consideration of a period from 1995 is because the
change in methodology for compiling statistical data taken from this time in
Portugal. As a summary conclusion, noted that the location of manufacturing in
Portugal is still mostly explained by specific factors, with a tendency to
increase in some cases the explanation by these factors, having the effect
"spillovers" and industrial policies little importance in this context.
