The role of productive and technological capacities in the dynamics of exports of developing countries

Productive and technological capabilities are important drivers of exports. This paper investigates, from an empirical approach, their role in the microeconomic dynamics of exports of 40 developing countries. The analysis shows that, within different economic sectors, countries with higher productive capacities have more and larger exporters, who also charge higher prices for their products. The results also confirm a positive relationship between technological capabilities and diversification: within each sector, exporters from countries with higher capabilities tend to export more products and to more destination markets. Finally, technological capabilities are positively associated with diversification at the level of products and trade destinations in high-tech sectors.