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Revisiting the Growth of Brazilian Economy (1980-2012)

Author

Listed:
  • José Luis Oreiro
  • Luciano Manarin D'Agostini
  • Fabrício Vieira
  • Luciano Carvalho

Abstract

The objective of this article is to analyze the causes of growth deceleration in the Brazilian economy initiated in the mid-1980s from a Keynesian-Structuralist perspective, according to which long-term growth is associated with structural change and capital accumulation. The article will analyze the period from 1980 to 2012 and will test the hypothesis that growth slowdown was caused by a large reduction in the rate of capital accumulation, due to a substantial reduction of the investment share in real output that begun in the 1980s and increased in the 1990s. The reduction of the investment share was the result of the existing imbalances of macroeconomic prices (mainly overvalued real exchange rate and exchange rate/wage ratio) which caused a premature deindustrialization of the Brazilian economy, with negative effects on investment opportunities. The obtained econometric results demonstrate the theoretical hypothesis regarding growth deceleration of the Brazilian economy.

Suggested Citation

  • José Luis Oreiro & Luciano Manarin D'Agostini & Fabrício Vieira & Luciano Carvalho, 2018. "Revisiting the Growth of Brazilian Economy (1980-2012)," PSL Quarterly Review, Economia civile, vol. 71(285), pages 203-229.
    • Handle: RePEc:psl:pslqrr:2018:25
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    File URL: https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/13998/pdf
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    References listed on IDEAS

    as
    1. Joan Robinson, 1962. "Essays in the Theory of Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00626-7, October.
    2. Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 14(4), pages 375-393, December.
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    Cited by:

    1. Luciano Ferreira Gabriel & Luiz Carlos De Santana Ribeiro & Frederico Gonzaga Jayme Jr. & Jose Luis Oreiro, 2020. "Manufactoring, economic growth, and real exchange rate: Empirical evidence in panel data and input-output multipliers," PSL Quarterly Review, Economia civile, vol. 73(292), pages 51-75.
    2. Oreiro, José L. & da Silva, Kalinka M. & Dávila-Fernández, Marwil J., 2020. "A New Developmentalist model of structural change, economic growth and middle-income traps," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 26-38.
    3. Doré, Natalia I. & Teixeira, Aurora A.C., 2023. "The role of human capital, structural change, and institutional quality on Brazil's economic growth over the last two hundred years (1822–2019)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 1-12.

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    More about this item

    Keywords

    structural change; capital accumulation; semi-stagnation; Brazil;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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