  This study analyses, through cross-section estimation methods, the influence
of spatial effects in the conditional product convergence in the parishes'
economies of mainland Portugal between 1991 and 2001 (the last year with data
available for this spatial disaggregation level). To analyse the data, Moran's
I statistics is considered, and it is stated that product is subject to
positive spatial autocorrelation (product develops in a similar manner to
product in neighbouring regions). Taking into account the estimation results,
it is stated that there are not indications of convergence (the population is
in the littoral of Portugal) and it can be seen that spatial spillover effects,
spatial lag (capturing spatial autocorrelation through a spatially lagged
dependent variable) and spatial error (capturing spatial autocorrelation
through a spatially lagged error term) condition the convergence of product of
Portuguese parishes in the period under consideration (1)(Martinho, 2011).
