Economic Growth In Brazil Research Articles

New Developmentalism Under Neoliberalism: The Case of Brazil

This study provides a comprehensive analysis of Brazil's socioeconomic policies and growth models under the Brazilian Workers Party from 2003 to 2016. It examines two key growth models implemented in this process: namely, primary-export led and domestic consumption-oriented growth models. By utilizing official statistics and secondary sources, it shows that primary exports were the driving force behind economic growth in Brazil until 2006. It also indicates that after 2006, despite not being the main facilitator of economic growth, the exporting sectors continued to support the current account balance in Brazil, thanks to increasing global demand and prices for Brazilian primary commodities. Nevertheless, the post-2006 period in Brazil witnessed an increasing weight of domestic consumption in growth dynamics. This mainly results from expanding social transfers and income distribution programs, growing employment, and increasing minimum wages. The study demonstrates that Brazil's inclusive growth model was not sustainable due to the strong dependence of domestic accumulation on foreign capital inflows and external demand.

GDP growth in Brazil after the liberalising reforms

ABSTRACT The Brazilian economy implemented the trade and financial liberalisation reforms in the first half of the 1990s as a new development strategy. Since then, Brazilian GDP has been unstable and much lower compared to the previous period. Despite this, there was a short period of relatively higher economic growth rate from 2004 to 2008, but the Brazilian economic growth decelerated after 2011; the country entered a recession between 2014 and 2016, and then in a stagnation period from 2017 onwards. The aim of this article is to analyse the Brazilian economic performance after the liberalising reforms and evaluate the reasons the Brazilian economy decelerated after 2010. To do so, we consider the importance of manufacturing production to a country’s economic performance and analyse this relationship for the specific case of Brazil, checking the contribution of the manufacturing production growth to the country’s GDP growth in circumstances of increases and decreases in GDP growth. To complement this analysis, we also evaluate the existence of increasing returns to scale. The results show that manufacturing production growth is still important for the Brazilian economic performance, especially to explain the moments when the country’s GDP decreases.

The innovation – Financial development – Economic growth nexus in Latin America

AbstractThis research investigates the causal relationship between innovation, financial development and economic growth in Brazil, Chile, Colombia, Mexico and Peru between 2000 and 2019. Based on quantitative analysis, including vector autoregressive (VAR) models, it can be concluded that bidirectional Granger-causalities are present in the trivariate nexus in the five Latin American countries over the investigated times. Consequently, the three variables support forecasting and policy implications focusing on one of the three sectors that impacts the other two in the future. The paper concludes that imitation and innovation policies focusing on intellectual property rights protection, education, knowledge, institutional change and technological catch-up are necessary to foster economic growth and financial development.

Green economic growth in BRIC and CIVETS countries: The effects of trade openness and sustainable development goals

This study aims to analyze the impact of trade openness and Sustainable Development Goals, Financial Development, and Technology on the economic growth of Brazil, Russia, India, China and Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa countries. The present analysis employs a balanced panel data set from 1996 to 2022. This study also uses various tests, such as the Johansen–Fisher cointegration and Granger causality test. The study's findings suggest that economic growth, trade openness, Sustainable Development Goals, financial development, inflation, technology, labor forces, and financial openness have a long-term relationship among them. In the long run, a positive relationship exists between economic growth, trade openness, and the sustainable development goals index in (BRIC) and (CIVETS) countries. Based on the heterogeneous panel non-causality tests, the findings demonstrate that trade openness and Sustainable Development Goals are a unidirectional causality between trade openness, Sustainable Development Goals, and economic growth.

Impact of Foreign Direct Investment (FDI) on Economic Growth: A Study of Brazil

Purpose: The aim of the study was to investigate the impact of foreign direct investment (FDI) on economic growth: a study of Brazil
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The study on Foreign Direct Investment (FDI) and economic growth in Brazil found a positive relationship between FDI inflows and GDP growth. FDI contributes to capital accumulation, technology transfer, and sectoral diversification, enhancing competitiveness. However, the impact varies across regions and industries, with disparities in spillover effects. Targeted policies are needed to maximize FDI benefits and promote inclusive growth, addressing regional disparities and socio-economic inequalities.
 Unique Contribution to Theory, Practice and Policy: Dependency theory, modernization theory & institutional theory may be used to anchor future studies on the impact of foreign direct investment (FDI) on economic growth: a study of Brazil. The study should provide practical recommendations for firms and corporate boards to enhance their corporate governance practices based on empirical findings. The study should inform policymakers and regulatory authorities about the implications of corporate governance regulations on firm performance and market competitiveness.

Foreign Exchange Reserves and Economic Growth of Brazil: A Nonlinear Approach

Foreign Exchange Reserves and Economic Growth of Brazil: A Nonlinear Approach

Importance, challenges and perspectives of using fungi in the biological control of plant diseases for Brazilian agriculture

Brazil's economic growth and development have a strong relationship with agribusiness. Agribusiness is made up of a production chain. This chain can be influenced by several problems, which can compromise the entire production cycle, such as various diseases and pests that can affect crops and reduce productivity, generating economic losses for producers. The objective of this literature review, of an exploratory-descriptive nature, is to present an overview of the economic, social, and environmental importance of Brazilian agribusiness, focusing on the western region of Bahia, pointing out its main challenges, as well as discussing the use of biotechnological tools for controlling plant diseases.

Did industrial and export complexity drive regional economic growth in Brazil?

Research on productive structures has shown that economic complexity conditions economic growth. However, little is known about which type of complexity, e.g., export or industrial complexity, matters more for regional economic growth in a large emerging country like Brazil. Brazil exports natural resources and agricultural goods, but a large share of the employment derives from services, non-tradables, and within-country manufacturing trade. Here, we use a large dataset on Brazil's formal labor market, including approximately 100 million workers and 581 industries, to reveal the patterns of export complexity, industrial complexity, and economic growth of 558 micro-regions between 2003 and 2019. Our results show that export complexity is more evenly spread than industrial complexity. Only a few-mainly developed urban places-have comparative advantages in sophisticated services. Regressions show that a region's industrial complexity is a significant predictor for 3-year growth prospects, but export complexity is not. Moreover, economic complexity in neighboring regions is significantly associated with economic growth. The results show export complexity does not appropriately depict Brazil's knowledge base and growth opportunities. Instead, promoting the sophistication of the heterogeneous regional industrial structures and development spillovers is a key to growth. This study demonstrates that industrial complexity, which accounts for all employment sectors, provides a more accurate basis for designing effective and inclusive industrial policies in emerging economies like Brazil, compared to export-based complexity.

Government debt and economic impact: An analytical comparison of different countries

The increase in the level of government debt has led to economic instability in a number of developing as well as developed nations. According to a study by Hilton (2021), having an unsustainable amount of public debt can slow down the economic growth of the nation in the long run. Therefore, it has become increasingly important to understand the economic impact that government debts have on different countries. The countries used in this paper are Brazil, Malaysia, South Africa, Thailand, and Turkey. Firstly, the study analyses the trends of public debt across these five countries. From the analysis, it could be realised that the level of government debt increased across all the countries. Moreover, the study also used a vector error correction model (VECM) methodology along with an impulse response function (IRF) to account for the country-wise impact of public debt on economic growth. The results showed that there is a negative impact on the economic growth of Brazil, Malaysia, Thailand, Turkey, and South Africa. Furthermore, the study also accounts for the impact of fiscal policies on the debt management structure of the specified countries.

The effectiveness of fiscal policy in Brazil through the MIDAS Lens

This paper aims to examine the effects of fiscal policy on economic growth in Brazil between 1999 and 2017. For this purpose, a novel methodology is applied, using a Vector Autoregressive with Mixed Frequency (MIDAS-VAR) model, proposed by Ghysels (2016), which allows for the estimation of the spending multiplier by measuring the impact of high-frequency data at low-frequency and vice versa. The impact of various types of spending on the gross domestic product (GDP) is analyzed, including primary expenditure, personnel, social benefits, subsidies, investment, and costing, while the central government’s primary revenue is used as the revenue variable. The expenditure and tax revenue are the high-frequency variables (monthly observations), whereas GDP is a low-frequency series (quarterly). The estimated fiscal multipliers for primary spending are less than one, suggesting no significant Keynesian effect on output, with particular attention given to the investment multiplier, which is estimated to be close to zero. Our results suggest that the frequency of data matters, and government expenditure has no significant impact on real GDP growth in Brazil. Therefore, the ability of Brazilian fiscal policy to influence economic growth may be limited.

Panel Data Analysis of the Impact of External Debt on Economic Growth and Inflation: The Case of Emerging Market Economies

This study aimed to analyze the impact of external debt on economic growth and inflation for emerging market economies for the period 1995-2020 using the panel data method. To this end, the study used the data on 12 countries listed in the Morgan Stanley Capital Index (MSCI) Emerging Markets Index. The results of the panel cointegration analysis showed that changes in external debt stock affect economic growth in the opposite direction and inflation rate in the same direction. According to the country-specific results of the panel cointegration analysis, external debt had a negative impact on economic growth in all countries except Mexico, Egypt, India, and Türkiye. External debt increased inflation in all countries except China, Egypt, India, South Africa, and Thailand. The Bootstrap panel causality test results showed a unidirectional causality from economic growth to external debt stock in China, India and Thailand, and a bidirectional causality in China. A unidirectional causality was also found from external debt stock to inflation in Colombia, and a unidirectional causality from inflation to external debt in China, India, Peru, and Thailand. Based on the cointegration analysis results, it is recommended that external debt should be used to finance more productive investments in order to ensure sustainable economic growth in Brazil, China, Colombia, Indonesia, Peru, Philippines, South Africa, and Thailand. The panel causality test results also showed that economic growth in China, India, and Thailand requires more external resources. Based on these results, it is recommended to reduce external debt in order to reduce inflation in Brazil, Colombia, Indonesia, Mexico, Peru, Philippines, and Türkiye.

Brazil: Central Bank Monetary Policy and Economic Growth

The paper mainly talks about the central bank monetary policies in Brazil. It also talks about the economic growth in Brazil. The paper utilizes several analysis skills, such as comparing the economic indicators between Brazil and the United States, analyzing the exchange rate policy, and analyzing the Government Fiscal Debt to explain the viewpoints. Several key findings have emerged throughout this analysis regarding the topics discussed: (1)Regarding social and institutional quality measurements, it is crucial to assess indicators such as the Human Development Index, poverty rates, access to healthcare and education, governance effectiveness, and corruption levels. (2) Policymakers can implement policies to improve foreign investor perceptions, such as enhancing regulatory frameworks, facilitating market access, developing infrastructure, promoting investor education, and encouraging foreign participation.

Examining the Impact of Innovations on Economic Growth in BRICS Countries

The study investigated the causal nexus between innovations and economic growth of Brazil, Russia, India, China and South Africa (BRICS) countries using panel data for the period 2004–2019. The total number of patent applications, the total number of trademark applications and percentages share of research and development expenditures to GDP are used as a proxy to measure innovations. The study used a panel regression with a fixed and random effect model, panel vector autoregression (VAR) model and impulse response function for the analysis. Further, the study checked both the symmetric and asymmetric impacts of innovations on economic growth using the panel autoregressive distributed lag (ARDL) model. The results from different econometric approaches are consistent and found that innovations positively and significantly impact economic growth. The results have also shown that there is a unidirectional causality running from innovations to per capita GDP in the short run. Finally, the results have shown the asymmetric causal linkage between innovations and economic growth. The study suggests that policymakers must encourage more investments in innovations for high economic growth in BRICS countries.

The role of human capital, structural change, and institutional quality on Brazil's economic growth over the last two hundred years (1822–2019)

A growing body of empirical literature has considered very long-time horizons when studying the sources of a country's economic growth. Nevertheless, the growth experiences of emerging economies (EEs) have been overlooked. This study examines to what extent human capital, structural change, and institutional quality contribute to the economic growth of one of the largest EEs in the world, Brazil, between 1822 and 2019. Resorting to the ARDL cointegration technique, the results suggest that years of schooling (human capital) have a positive and long-lasting impact on Brazil's economic growth. Moreover, there is solid evidence that sectoral changes toward more advanced and sophisticated manufacturing basis is growth-enhancing in the country. Finally, institutional quality does not constitute over the very long-run, a significant booster of Brazilian economic growth.

Income inequality and economic growth in BRICS: insights from non-parametric techniques

The income inequality-economic growth linkage is a topical issue in economics and policy discussions. Both theoretical and empirical results on the impact of income inequality on economic growth have been controversial. One of the criticisms of the existing studies relates to using cross-sectional data and linear estimation techniques for empirical analysis. Capitalising on the limitations in the existing literature, this article employs the novel Quantile-on-Quantile Regression (QQR) approach to examine the relationship between income inequality and economic growth in BRICS. Applying the novel QQR technique helps to model how income inequality distributions affect the distributions of economic growth. The quantile cointegration tests reveal cointegration between income inequality and economic growth. The QQR results indicate that income inequality has a stronger negative effect on the lower and middle tails of economic growth in Brazil while having a stronger positive impact on economic growth in Russia, China and South Africa. For India, income inequality has a stronger negative effect on the lower tail of economic growth and a stronger positive impact on the middle and higher tails of economic growth. These results are consistent with quantile regression results. Further analysis from the Granger causality-in-quantiles shows that at various quantiles, a bidirectional causal relationship between income inequality and economic growth exists in China, while a unidirectional causality runs from income inequality to economic growth in Brazil and India. No causal relationship was found between income inequality and economic growth in Russia and South Africa. The policy implications are discussed.

Dynamics of governance, gross capital formation, and growth: Evidence from Brazil, Russia, India, China, and South Africa

This study investigates the impact of governance index and gross fixed capital formation on the economic growth of Brazil, Russia, India, China and South Africa (BRICS) using annual data from 2002 to 2019. This study employs Fixed Effect Model, Driscoll and Kraay standard error with fixed effect, Fully Modified Ordinary Least Square, Dynamic Ordinary Least Square (DOLS) and Panel Dumitrescu Hurlin Causality test. The study has divided the variables into two models where model I includes the impact of governance index (jointly) on economic growth while model II examines the impact of governance index on economic growth individually. The findings demonstrate that the governance index, gross fixed capital formation, population, control of corruption, and governance effectiveness have a positive and significant impact on economic growth, whereas regulatory quality showed a significant and negative impact on economic growth. Furthermore, regarding the Panel test, we notice the presence of unidirectional causality among the constituent variables. Therefore, this study suggests that the government should encourage economic development in the BRICS countries and move away from outdated ideas and poor institutional quality in favor of a new comprehensive reform to achieve excellent governance, population growth control, labor law changes, and corruption control.

Renewable, non-renewable energy consumption and income in top ten renewable energy-consuming countries: Advanced Fourier based panel data approaches

This study investigates the impact of renewable and non-renewable energy consumption on economic growth in the top ten renewable energy-consuming countries over the period 1970–2019 using newly developed Fourier panel cointegration and causality tests. The negligence of structural breaks can significantly alter causal relationships, leading to misinterpretation of renewable energy policies. This study eliminates the problem using Fourier-based techniques. The long-run estimates show that non-renewable energy supports economic growth in eight out of the ten countries, while renewable energy has a positive effect on economic growth in Brazil, the United Kingdom, and France. The Fourier causality test indicates that the energy-led growth hypothesis is valid for both types of energy in the United States, India, the United Kingdom, and Spain. While the non-renewable energy-led growth hypothesis is valid for Italy, the conservation hypothesis is valid for both energy variables for Germany and for renewable energy for China. The overall results show that renewable energy can also be an important driver of economic growth, although not as strong as non-renewable energy. Therefore, countries need to closely monitor economic development while pursuing policies to reduce fossil fuels and deploy renewables in a way that enables higher economic growth.

Assessment of railway infrastructure improvements: valuation of costs, energy consumption and emissions

The efficiency of rail freight transport has significant impact on climate change compared to other modes. However, railways still struggle to take larger shares of the growing total transport volumes especially in developing countries, where priority tends to be given to doubling tracks parallel to the existing infrastructure instead of building entirely new optimized alignments. In this context, this paper discusses the lifespan impacts of these two strategies on a real case study in Brazil. We compared the doubling costs of tracks parallel to an existing route and the respective construction costs of 100 new optimized alignments, and the fuel and CO2-equivalent costs of four pollutants of trains running in 20 services over a timespan. Results show that the CO2-equivalent costs are significantly lower in the optimized alignments. Scenarios varying the yearly Brazilian economic growth and different monetary CO2-equivalent values show that 111 and 16 years are required to fuel and emissions compensate for the greater construction costs of the optimized alignments in the respective scenarios of average 1.2% and 4.6% economic growth over the years and CO2-equivalent values of USD21.9/tonCO2 and USD944.5/tonCO2.

Nexus between fiscal imbalances, green fiscal spending, and green economic growth: empirical findings from E-7 economies

The green economy is viewed as a cost-effective means of achieving sustainability around the globe, and a recent study inferred the nexus between the fiscal imbalances and green economic growth based on E-7 economies data. This paper attempts to answer how green fiscal spending ensures green economic growth and stabilizes fiscal imbalances in E-7 economies. The study findings highlighted the mechanism and viability of green fiscal spending for fiscal imbalances and green economic growth. More specifically, results showed that green fiscal spending extends green economic growth in Brazil with 30%, in China with 44%, in India with 11.8%, in Indonesia with 34%, Russia with 29.7%, and Turkey with 22.4%, respectively. Based on the findings, the following are our recommendations: (i) local governments should rebalance their fiscal budgets and invest more on public goods to assess local sustainable development, and (ii) several development initiatives specific to the local level should be employed to maximize fiscal spending.

Estimating the Possible Effect of Belt and Road Initiative on Brazilian Economic Growth

Brazil's future participation in the Belt and Road Initiative will promote economic growth, increase the importance of the initiative on the international scene and contribute to the promotion of bilateral economic and trade relations between China and Latin America countries.This paper analyses the alleged effect of BRI on Brazilian economy if the country would have chosen to join the program in the past years (2013-2019) as other countries in the world did. The alleged effect is calculated using the methodology of synthetic control: a statistical method used to evaluate the effect of an intervention/programme in comparative case studies.The results show that Brazil could benefit from joining the Belt and Road Initiative: the GDP per capita rate would be 4.73% higher each year, on average.However, to Brazil joins the BRI, it will be necessary for China and Brazil to know how to maintain a frequent and structured dialogue that projects confidence, opens paths and does not leave governmental dialogue behind what is happening in practical reality. Moreover, more academic research about the initiative and a greater dissemination of its benefits by the media will be needed to raise awareness among the public and politicians about a probable BRI agreement by Brazil.