Abstract
The process of fragmentation of production known as Global Value Chains (GVCs) has extinguished the need to acquire competence in all aspects of the production of a good and has enabled developing countries to join a cross-border cooperation network, sharing production and specializing in only one or a few stages of production activities involved in the production of a final good, making the importance of services for productive activities even more evident. Many studies have emerged to identify the main policies that could lead to greater insertion of countries in GVCs. Besides policies of openness to trade and foreign direct investment, one of the measures presented for cost reduction and greater competitiveness is labor reform. In Brazil there was a labor reform in 2017. The main argument for its implementation was the generation of more jobs, giving the country greater competitiveness to its industry and, consequently, better conditions for insertion in international trade. This paper aims to analyze the insertion of the Brazilian economy in the GVC before and after the labor reform, showing that the indicators and studies point to the fact that there was no upgrade in the insertion of the country in GVC, indicating that in Brazil predominates a strategy of limited insertion in the GVC, as it is based on activities related to the cost of cheap labor and low level of technological intensity, such as the production of food, beverages, textiles and shoes, among others.
Highlights
INSERTION OF BRAZIL IN GLOBAL VALUE CHAINS AFTER LABOR REFORMEsta obra está licenciada com uma Licença Creative Commons Atribuição 4.0 Internacional
During the 1980s and 1990s, there was a rapid industrializationof several developing countries and a significant increase in South -South trade, generating a significant growth in the participation of these countries in the export of manufactured products whereas intermediate inputs trade and foreign direct investment flows increase. Trade agreements, such as the General Agreement on Tariffs and Trade (GATT), the formationof economic blocs, such as the North American Free Trade Agreement, and, more recently, the unilateral liberalization measures of developing countries are essential for the increase in the exports of industrialized products by the newly industrialized economies, for the increase of intra-industry trade, for the emergence of "supertrading" nations and for the fragmentationof the value chain or the breakdown of productioninto global value chains, as it was called to denominate the process of production fragmentation (BALDWIN and ROBERT-NICOUD, 2004 and 2010)
These changes allowed for a process of production fragmentation, which causes the extinction of the need to acquire competence in all aspects of the production process of a good and allows developing countries to associate with a network of cross -border cooperation, sharing production itself and specializing in only one or a few steps of the productionactivities involved in the manufacturing of a final good
Summary
Esta obra está licenciada com uma Licença Creative Commons Atribuição 4.0 Internacional. Como ser citado (modelo ABNT) LIMA, Uallace Moreira. Insertion of Brazil in Global Value Chains after labor reform. Cadernos do CEAS: Revista Crítica de Humanidades.
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