North 2020 Economic Impacts: An Input-Output Analysis

Abstract

This study aims to estimate the impact of the NORTE 2020 program on the Portuguese economy GAV and employment and whether the global wealth generated is concentrated in the region.
Based on the input-output analysis, the total investment approved under this program is estimated to have an impact on national GAV of around € 4 billion and lead to the creation of 112,000 jobs. The impact is overwhelmingly concentrated in the Northern Region.
Competitiveness and internationalization correspond to the largest fraction of total investment approved by thematic priority, but this is where the impact on GAV per euro invested is the smallest, much smaller than the remaining thematic priorities’ multipliers. The multiplier effect on GAV of investment in human capital is the most significant.