Productive experience and specialization opportunities for Portugal: an empirical assessment
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”.
|Date of creation:||Jul 2013|
|Date of revision:||Jul 2013|
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