The study tested Verdoorn's Law in the Portuguese economy at regional and sectoral levels from 1995-1999. They looked at factors like trade flows, capital accumulation, and labor concentration. The goal was to see if economies of scale were present, leading to regional divergence. The results showed that Verdoorn's Law holds true, indicating increasing economies of scale in both regional and sectoral levels. However, the additional variables had minimal impact on economies of scale.