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Productive experience and specialization opportunities for Portugal: an empirical assessment

Author

Listed:
  • 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”.

Suggested Citation

  • Miguel Lebre de Freitas & Susana Salvado & Luis Catela Nunes & Rui Costa Neves, 2013. "Productive experience and specialization opportunities for Portugal: an empirical assessment," GEE Papers 0010, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2013.
    • Handle: RePEc:mde:wpaper:0010
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    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_10.pdf
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    Cited by:

    1. Freire Junior, Clovis, 2017. "Promoting structural transformation: Strategic diversification vs laissez-faire approach," MERIT Working Papers 2017-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Clovis Freire, 2017. "Economic Diversification: Explaining the pattern of diversification in the global economy and its implications for fostering diversification in poorer countries," Working Papers 150, United Nations, Department of Economics and Social Affairs.

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    Keywords

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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