Unpicking Portugal’s export performance: A microdata analysis
Portugal has notably increased its international openness over recent decades, with
exports’ share of GDP rising by 20 percentage points since 1993. This analysis couples
microdata with panel regression techniques to investigate the drivers of Portuguese
export growth over the 1995-2016 period. The results highlight that there was no one
single factor behind the export expansion. While an improvement in price competitiveness
played a significant role, the majority of the increase in exports was explained by
other factors. These include increases in the quality of export products and weak
domestic demand that prompted firms to increase their focus on foreign markets. The
empirical results also suggest that the restoration of the health of the Portuguese
financial sector and its further development is beneficial for export growth.
Published on September 14, 2020
In series:OECD Economics Department Working Papersview more titles