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From Manufacturing Decline to the Rise of Consultancy:A Framework for Time-Consistent Industry Analysis in Portugal (1986-2018)

Author

Listed:
  • Ernesto Nieto-Carrillo

    (University of Coimbra, CeBER, Faculty of Economics)

Abstract

Since the creation of the Quadros de Pessoal (QP) in 1981, a longitudinal dataset of all Portuguese companies, four industry classifications have been used, hampering the ability to conduct long-term studies on firm dynamics and structural change. This paper proposes a framework for standardising the QP with time-consistent two-digit industry codes to analyse the impact of the ICT revolution on firm growth rates, net job creation, and employment composition across sectors. Our industry-consistent trends confirm the rise and fall of business dynamism and the contraction of manufacturing alongside the expansion of services. However, while the increased dispersion and positive skewness of growth rates and net job creation in ICT services played a crucial role, the technological paradigm shift in Portugal seems to be predominantly reflected in the vertical disintegration of firms and the subsequent substantial growth of administrative support activities.

Suggested Citation

  • Ernesto Nieto-Carrillo, 2024. "From Manufacturing Decline to the Rise of Consultancy:A Framework for Time-Consistent Industry Analysis in Portugal (1986-2018)," Notas Económicas, Faculty of Economics, University of Coimbra, issue 58, pages 7-36, December.
    • Handle: RePEc:gmf:journl:y:2024:i:58:p:7:36
    DOI: 10.14195/2183-203X_58_1
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    More about this item

    Keywords

    Structural change; deindustrialisation; firm dynamics; industry classification; longitudinal analysis;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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