The article examines how regions in Portugal grow economically by using models from New Economic Geography. It tests the Verdoorn Law and alternative interpretations in different regions and sectors from 1995 to 1999. The study also looks at factors like trade, capital, and labor to see how they affect productivity. The researchers found that spatial effects influence productivity in different economic sectors in Portugal. They also analyzed absolute and conditional convergence of sectoral productivity at a regional level during the same period. The study uses panel data to understand how variables like capital/output ratio and goods/output flow impact productivity.