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Productive experience and specialization opportunities for Portugal: an empirical assessment

Miguel de Freitas (), Susana Salvado (), Luis Nunes () and Rui Costa Neves
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Rui Costa Neves: Nova SBE

No 10, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

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”.

Keywords: International trade; Comparative advantage; PRODY; The Portuguese Economy (search for similar items in EconPapers)
JEL-codes: C14 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse and nep-int
Date: 2013-07, Revised 2013-07
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Related works:
Journal Article: Productive experience and specialization opportunities for Portugal: an empirical assessment (2015) Downloads
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