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Assessing the Competitiveness of the Metalworking Sector

Author

Listed:
  • João Marinho

    (Strategy and Research Office, Ministry of the Economy. Nova School of Business and Economics, Universidade Nova de Lisboa)

  • Pedro Carvalho

    (Strategy and Research Office, Ministry of the Economy. Nova School of Business and Economics, Universidade Nova de Lisboa)

Abstract

The main goal of this paper is to find the fundamental determinants of competitiveness within the Portuguese Metalworking industry, which is measured by both the Export Status and the Export Intensity of a firm. This sector is absolutely vital to the Portuguese Economy and it is characterized by its highly exportable profile. Moreover, its heterogeneity makes the sector sole in its analysis and asks for a more thoughtful and contemplative enquiry. Therefore, exploiting a two-step approach using a Probit and a Fixed-Effect estimator, for Portuguese firm-level data from 2010 to 2015, we try to answer two research questions: which characteristics are associated with exporter firms? And then, within the group of firms that export, which are the characteristics related to higher levels of export Intensity? Interesting results were then yield showing that factors such as investment in fixed tangible and intangible assets, productivity (Total Factor Productivity), having previously exported and, one of our most relevant findings, capital intensity are associated with an increase of internationalization and thus of competitiveness.

Suggested Citation

  • João Marinho & Pedro Carvalho, 2018. "Assessing the Competitiveness of the Metalworking Sector," GEE Papers 0092, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2018.
  • Handle: RePEc:mde:wpaper:0092
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    File URL: http://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_92.pdf
    File Function: First version, 2018
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    More about this item

    Keywords

    Metalworking; Exports; Competitiveness; Firm-level data;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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