Varieties of Capitalism, Growth Regimes, and Structural Change in Eurozone Core and Peripheral Countries: Germany as a Role Model for Portugal?

Abstract

This article aims at analyzing the structural changes that occurred in the Portuguese economy after the 2010/2013 sovereign debt crisis, compared with what occurred in Germany and using the current debate surrounding the new reform of the Eurozone as a backdrop. We thus intend to find out whether a peripheral southern economy like Portugal and the Eurozone’s core economy (Germany) have become closer and, if so, what that means in terms of the sustainability of the Eurozone as a set of different economies sharing the same currency. The study is framed in an institutional political economy approach (Varieties of Capitalism) and a macroeconomic post-Keynesian perspective (demand-led growth regimes), as well as a structural analysis of economic complexity and product specialization of these contrasting economies.

Keywords:

• Eurozone crisis
• Germany
• growth regimes
• Portugal
• varieties of capitalism

JEL CLASSIFICATIONS:

• O11
• O43
• O57
• P16

Acknowledgments

The authors are grateful for the support of FCT—Fundação para a Ciência e Tecnologia (Portugal), having received national funding under grant UIDB/05069/2020. They also thank the useful comments and suggestions offered by the editor and two anonymous referees.

Additional information

Notes on contributors

Marta Vaz Silva

Marta Vaz Silva graduated with a Master’s degree in International Economics and European Studies from ISEG–Lisbon School of Economics and Management, Universidade de Lisboa, Portugal.

João Carlos Lopes

João Carlos Lopes is Associate Professor of Economics at ISEG–Lisbon School of Economics and Management, Universidade de Lisboa, Portugal and Researcher at UECE–Research Unit on Complexity and Economics.