Sector productivity and geographical diversification as export enhancing factors: the case of Portugal

An investigation of the relationship between productivity growth and exporting is vital to understand whether productivity-enhancing policies or those export promotion are more adequate for economic progress. This article considers 32 activities, in Portugal, from 2006 2017. It found that activities with high levels systematically likelier register higher than less productive ones. result corroborates self-selection theory. Furthermore, effect geographical diversification on volume exports tested, as well presence diminishing returns this association. For both cases significant results found, suggesting enlisting destinations tend possess volumes, but also after a certain threshold negative effects offset associated positive benefits.