The importance of the manufacturing sector for Brazilian economic development

Abstract

This article, based on Kaldor's model of the stages of development, concludes that, despite having modernized thanks to the economic liberalization process, the evolution of Brazil's industrial structure has increased the share of low-technology goods in the production matrix. The trend appreciation of the real in the initial phase of economic liberalization was positive for modernizing Brazil's technology stock; but its continuation in recent years, when there has been ample international liquidity for emerging countries, threatens the development of the national manufacturing sector. This sector could suffer a technological setback, which, according to the principle of circular cumulative causation, diminishes its capacity to forge links with other sectors of activity, and accentuates the economy's long-term external dependency.

Technical progress in GDP production and CO2 emissions in Brazil: 1970-2012

“…On the deindustrialization of the Brazilian economy, seeFurtado and Carvalho (2005) andFeijó and Lamonica (2012).…”

Changes in financial regulation and the Brazilian economy: comments on 'The evolution of financial regulation before and after the crisis'

“…Therefore, there will not be easy to escape the perverse equilibrium of the interest rate that we got ourselves into many years ago". 4 About this, see Nassif et al, 2011. 5 About this, see Feijo and Lamonica, 2012. 6 For a discussion about indicators to identify vulnerabilities in the external sectors of emerging economies, see Araujo et al, 2013. As mentioned before, a 'new era' of sustainable growth for developed and developing economies will emerge when trust in future expectations will be rebuilt.…”