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Productive experience and specialization opportunities for Portugal: an empirical assessment

  • Miguel Lebre de Freitas

    ()

    (Universidade de Aveiro, NIPE, GEE)

  • Susana Salvado

    (Banco de Portugal)

  • Luis Catela Nunes

    (Nova SBE)

  • Rui Costa Neves

    (Nova SBE)

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
File Function: First version, 2009
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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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  1. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
  2. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-94, February.
  3. Rodriguez-Clare, Andres, 1996. "The division of labor and economic development," Journal of Development Economics, Elsevier, vol. 49(1), pages 3-32, April.
  4. Jovanovic, B. & Nyarko, Y., 1996. "Learning by Doing and the Choice of Technology," Working Papers 96-25, C.V. Starr Center for Applied Economics, New York University.
  5. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
  6. Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2006. "What You Export Matters," CEPR Discussion Papers 5444, C.E.P.R. Discussion Papers.
  7. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
  8. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
  9. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
  10. Hausmann, Ricardo & Klinger, Bailey, 2006. "Structural Transformation and Patterns of Comparative Advantage in the Product Space," Working Paper Series rwp06-041, Harvard University, John F. Kennedy School of Government.
  11. Rodrik, Dani, 1996. "Coordination failures and government policy: A model with applications to East Asia and Eastern Europe," Journal of International Economics, Elsevier, vol. 40(1-2), pages 1-22, February.
  12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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