IDENTIFYING VULNERABLE INDUSTRIES AND REGIONS - THE PROPOSED EUROPEANSINGLE MARKET AND PORTUGUESE MANUFACTURING

This article presents a simple methodology for assessing the vulnerabi lity of industries and regions in an environment of increasing wages. The analysis was motivated by the proposed European Single Market Act and the effects it will likely have on Portugal. The methodology shows that the most vulnerable industries are those with high labor intensi ty and low wages, a result that contrasts sharply with other studies. Due to the geographical concentration of these vulnerable industries, the regional consequences of European Community integration on Portugu ese manufacturing will be considerable.