Maria Eugénia Mata

Analysis of world economic variables using multidimensional scaling

Waves of globalization reflect the historical technical progress and modern economic growth. The dynamics of this process are here approached using the multidimensional scaling (MDS) methodology to analyze the evolution of GDP per capita, international trade openness, life expectancy, and education tertiary enrollment in 14 countries. MDS provides the appropriate theoretical concepts and the exact mathematical tools to describe the joint evolution of these indicators of economic growth, globalization, welfare and human development of the world economy from 1977 up to 2012. The polarization dance of countries enlightens the convergence paths, potential warfare and present-day rivalries in the global geopolitical scene.

Multidimensional Scaling Analysis of the Dynamics of a Country Economy

This paper analyzes the Portuguese short-run business cycles over the last 150 years and presents the multidimensional scaling (MDS) for visualizing the results. The analytical and numerical assessment of this long-run perspective reveals periods with close connections between the macroeconomic variables related to government accounts equilibrium, balance of payments equilibrium, and economic growth. The MDS method is adopted for a quantitative statistical analysis. In this way, similarity clusters of several historical periods emerge in the MDS maps, namely, in identifying similarities and dissimilarities that identify periods of prosperity and crises, growth, and stagnation. Such features are major aspects of collective national achievement, to which can be associated the impact of international problems such as the World Wars, the Great Depression, or the current global financial crisis, as well as national events in the context of broad political blueprints for the Portuguese society in the rising globalization process.

Managerial strategies in canning industries: A case study of early twentieth century Portugal

The paper discusses entry barriers in the Portuguese canning industries in the early twentieth century. The most important challenge facing the canning industries was a dependence on unsteady supply of raw material. The available technology, branding trademarks, product differentiation and product quality, versus abundance or scarcity of resources to be used as inputs and international trade presented contradictory effects on entry barriers. Deterrence was inefficient, some foreign firms delocalised to Portugal, and the sector is an interesting case-study in the historical context of globalisation.

Urban Dominance and Labour Market Differentiation of a European Capital City

Preface. 1. Introduction P.T. Pereira, M.E. Mata. 2. Portuguese Urban System: 1890-1991 A.B. Nunes. 3. Population and Urban Density: Lisbon in the 19th and 20th Centuries L. Baptista, T. Rodrigues. 4. Lisbon: Social Differentiation and the Formation of Labour Markets M.I. Baganha, M.M. Marques. 5. Lisbon/Oporto Rivalry in the 19th and 20th Centuries M.E. Mata. 6. Two Capitals on the Periphery: Lisbon and Dublin in 1981 P.T. Pereira. 7. A Century of Urbanization in Portugal and Europe: Some International Comparisons M.E. Mata, P.T. Pereira. Subject Index.

PORTUGUESE AVERAGE COST OF CAPITAL

The oldest Portuguese share index still being calculated is the BVL/PSI-General, one which started the daily series on 5/Jan/1988 with a base value of 1000 points. Everyday a single value is computed based on the closing prices of all the shares included in the sample. Also, all corporate events affecting the price of any share beyond market sentiment are taken into account through proper adjustments, either in the numerator or the denominator of the formula. However, for dates before January 1988, there is nothing comparable to this index since the two different series known either never disclosed the methodology adopted to calculate the index or followed solutions not compatible with the above index. The present paper explains the solutions adopted to replicate as closely as possible the methodology of the BVL-General index to the main market of the Lisbon Exchange for the period 1978 – 1987. This is the first estimate of the historical Equity Risk Premium in Portugal above short-term riskfree rate from the re-opening of the market following the Carnation Revolution (and the accompanying nationalizations), to the present. In showing a value of the same order of magnitude found in other countries, the paper invites further studies on the effects of political decisions such as privatizations and joining the European Union. JEL codes:

Entropy Analysis of Monetary Unions

This paper is an exercise of quantitative dynamic analysis applied to bilateral relationships among partners within two monetary union case studies: the Portuguese escudo zone monetary union (EZMU) and the European euro zone monetary union (EMU). Real world data are tackled and measures that are usual in complex system analysis, such as entropy, mutual information, Canberra distance, and Jensen–Shannon divergence, are adopted. The emerging relationships are visualized by means of the multidimensional scaling and hierarchical clustering computational techniques. Results bring evidence on long-run stochastic dynamics that lead to asymmetric indebtedness mechanisms among the partners of a monetary union and sustainability difficulties. The consequences of unsustainability and disruption of monetary unions have high importance for the discussion on optimal currency areas from a geopolitical perspective.

Serving SMEs Via the Stock Exchange: Historical Lessons from the Lisbon Stock Exchange

Abstract: The development of large companies in the western world — many being huge multinational corporations — and the sheer size of their financial needs has given an added importance to tradability, a fact that can clearly be gauged by the recently discovered “high frequency trading” (HFT) operations which are only possible with large issues. Also contributing to the importance of tradability is the recent demutualization of most exchanges during the 1990s, which turned them into for-profit organizations. In fact, large issues of shares or bonds allow economies of scale, and generate experience in listing practices and trading operations, thereby enhancing the profitability of those commercially oriented stock exchanges. Thus, small and medium enterprises (SMEs) are now much less attractive to these organizations, as compared to large enterprises (LEs), due to their inherent lack of liquidity and to the economies of scale. We discuss the barriers before SMEs, which require special accommodations to be able to raise stable funds for their development.

From finance to management: Rui Ennes Ulrich, a Portuguese scholar of the early twentieth century

Finance is usually considered to be a complex science, made up of unsatisfactory explanations interpreting the mystery and volatility of financial markets. Expectations, the mood of the market, as well as investment strategies to manage diversified portfolios, are intimidating issues for most people even today. This paper describes how early twentieth-century globalisation framed a network of stock exchanges, from local to regional and national scale, stimulating scientific knowledge on equities, shares, securities, bonds, debentures, transactions, and risk premiums. Both individuals and institutional investors needed financial education. In Portugal Ruy Ennes Ullrich wrote his doctoral dissertation on stock exchanges and financial markets. His book was published in Coimbra in 1906, by the University Press. This paper analyses his contributions in the context of the available literature, and his management performance.

Foreign joint-stock companies operating in Portuguese colonies on the eve of the First World War

The usual view on foreign capital movements is that they dominated international economic relationships throughout the second half of the nineteenth century. This perspective explains the internationalisation of capital as a consequence of the increasing integration of the world economy, thanks to the improving technology that provided better and more efficient transport.

From pioneering mercantile state to ordinary fiscal state: Portugal 16th-19th centuries

Portugal, a poor and small kingdom, became a pioneering mercantile state thanks to its Discoveries. When did Portugal establish its fiscal institutions as a world power? Was such a powerful maritime nation,