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The Great Divide: The Paths of Industrial Competitiveness in Brazil and South Korea

Author

Listed:
  • João Prates Romero

    (PhD Candidate, Land Economy Department, University of Cambridge)

  • Elton Freitas

    (PhD Candidate, Cedeplar-UFMG)

  • Gustavo Britto

    (Cedeplar-UFMG)

  • Clara Coelho

    (Research Assistant, Cedeplar-UFMG)

Abstract

The present paper expands the approach developed by Hidalgo et al. (2007), Hausmann et al. (2007) and Hidalgo and Hausmann (2009) to analyse the relationship between structural change and economic sophistication. To do so, the paper shows product space networks for each decade since the 1960’s and analyses revealed comparative (dis)advantages indictors for Brazil and South Korea from the 1960s to 2000s. The results show that although having similar per capita GDPs in the beginning of the series, South Korea achieved faster growth than Brazil by specialising in high sophistication, technology intensive goods.

Suggested Citation

  • João Prates Romero & Elton Freitas & Gustavo Britto & Clara Coelho, 2015. "The Great Divide: The Paths of Industrial Competitiveness in Brazil and South Korea," Textos para Discussão Cedeplar-UFMG 519, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td519
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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20519.pdf
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    References listed on IDEAS

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    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    4. Jacobsson, Staffan, 1993. "The length of the infant industry period: Evidence from the engineering industry in South Korea," World Development, Elsevier, vol. 21(3), pages 407-419, March.
    5. Bahar, Dany & Hausmann, Ricardo & Hidalgo, Cesar A., 2014. "Neighbors and the evolution of the comparative advantage of nations: Evidence of international knowledge diffusion?," Journal of International Economics, Elsevier, vol. 92(1), pages 111-123.
    6. Collins, Susan M, 1990. "Lessons from Korean Economic Growth," American Economic Review, American Economic Association, vol. 80(2), pages 104-107, May.
    7. Lybbert, Travis J. & Zolas, Nikolas J., 2014. "Getting patents and economic data to speak to each other: An ‘Algorithmic Links with Probabilities’ approach for joint analyses of patenting and economic activity," Research Policy, Elsevier, vol. 43(3), pages 530-542.
    8. Ricardo Hausmann & César Hidalgo, 2011. "The network structure of economic output," Journal of Economic Growth, Springer, vol. 16(4), pages 309-342, December.
    9. Stephan Haggard, 2000. "Political Economy of the Asian Financial Crisis, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 107, April.
    10. Leonardo Burlamaqui & Jose A. P. De Souza & Nelson H. Barbosa-Filho, 2006. "The Rise and Halt of Economic Development in Brazil, 1945-2004: Industrial Catching-up, Institutional Innovation and Financial Fragility," WIDER Working Paper Series RP2006-81, World Institute for Development Economic Research (UNU-WIDER).
    11. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    12. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
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    Citations

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    Cited by:

    1. Hartmann, Dominik & Zagato, Ligia & Gala, Paulo & Pinheiro, Flavio L., 2021. "Why did some countries catch-up, while others got stuck in the middle? Stages of productive sophistication and smart industrial policies," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 1-13.
    2. Eum, Wonsub & Lee, Jeong-Dong, 2019. "Role of production in fostering innovation," Technovation, Elsevier, vol. 84, pages 1-10.
    3. Thiago Caliari & Tulio Chiarini, 2021. "Knowledge Production and Economic Development: Empirical Evidences," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 1-22, June.
    4. Tulio Chiarini & Marcia Siqueira Rapini & Leandro Alves Silva, 2017. "Access to knowledge and catch-up: Exploring some intellectual property rights data from Brazil and South Korea," Science and Public Policy, Oxford University Press, vol. 44(1), pages 95-110.
    5. Albuquerque, Eduardo da Motta e & Chaves, Catari Vilela & Dos Santos, Ulisses Pereira & Ribeiro, Leonardo Costa, 2020. "Innovation systems and changes in the core-periphery divide: notes on a methodology to determine countries’ trajectories using science and technology statistics," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    6. Julia de Furquim Werneck Moreira & Gilberto de Assis Libânio, 2018. "Macroeconomic policies after the 2008 financial crisis: lessons from brazilian and chinese experiences," Textos para Discussão Cedeplar-UFMG 585, Cedeplar, Universidade Federal de Minas Gerais.

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    More about this item

    Keywords

    Economic Complexity; Capabilities; Product Space; Brazil; South Korea.;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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