Export potential of Brazilian industrial firms

Most of the recent astonishing export growth in Brazil came from firms which already exported. The export base was not able to grow at the same pace. Since expanding the export base may have several positive effects on firms' productivity and size, in this paper we provide a four-level classification of Brazilian industrial firms according to their potential to export, and we identify a subset of non-exporting firms which are potential exporters. The effects of export stimulating policies may be improved by focusing more closely on these firms.