Determinants of portuguese trade and specialization across the period 1995-2014

Abstract

The purpose of this thesis is to evaluate the determinants of the Portuguese trade patterns between 1995 and 2014 and to compare the results with previous investigations. The econometric approach followed is based in dynamic panel data. This paper concludes that Portugal has comparative advantages in products relative intensive in unskilled labour and in products of economic activities with a high level of the technology proxy and with high market concentration. However, Portugal exhibits comparative disadvantages in products capital intensive while the skilled labour has a neutral impact. Since some results contradict previous literature, there were structural changes in the determinants of the Portuguese trade patterns.