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Productive experience and specialization opportunities for Portugal: an empirical assessment

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  • Miguel Lebre de Freitas

    ()
    (Universidade de Aveiro, NIPE, GEE)

  • Susana Salvado

    (Banco de Portugal)

  • Luis Catela Nunes

    (Nova SBE)

  • Rui Costa Neves

    (Nova SBE)

Abstract

Following Hidalgo et. al. (2007), we use the structure of international trade in 2005 to estimate a measure of “revealed relatedness” for each pair of internationally traded products, which intends to capture similarities in terms of the capabilities they use in production. Our method departs from the original one, in that we run a probit model, instead of computing conditional probabilities. We then use the estimated matrix of “Revealed Relatedness.Indexes” to investigate which “upscale” products in which Portugal didn’t develop comparative advantage are more related to products in which the country is currently specialized. The analysis suggests that more than 60% of Portugal’s “upscale opportunities” lie in non-traditional sectors, such as “machinery” and “chemicals”.

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File URL: http://www.gee.min-economia.pt/RePEc/WorkingPapers/gee_papers_10.pdf
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Bibliographic Info

Paper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0010.

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Length: 23 pages
Date of creation: Jul 2013
Date of revision: Jul 2013
Handle: RePEc:mde:wpaper:0010

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Keywords: International trade; Comparative advantage; PRODY; The Portuguese Economy;

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