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.

Details

Title
Revisiting Growth of Brazilian Economy (1980-2012)
Author
José Luis Oreiro, Luciano Manarin D'Agostini, Fabrício Vieira, Luciano Carvalho
Publication year
2018
Publication date
2018
Publisher
Associazione Economia Civile
ISSN
20373635
e-ISSN
20373643
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.13133/2037-3643_71.285_6
ProQuest document ID
2101288905
Copyright
Copyright (c) 2018. This work is licensed under https://creativecommons.org/licenses/by-nc-nd/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.