Where is Brazil going? Taking stock of recent trends in industrial and trade policies and the challenges ahead

Mesquita Moreira, Mauricio and Frischtack, Claudio (2014): Where is Brazil going? Taking stock of recent trends in industrial and trade policies and the challenges ahead.

Abstract

Brazil’s trade and industrial policies in the last decade has taken an increasingly sharp turn towards boosting and protecting the local manufacturing industry, particular after the 2008 financial crisis. This paper reviews these policies and their initial results and argues that, while they have brought some short-term relief, they have done so at the cost of undermining the fundamentals of long-term growth. The country’s recent lackluster economic performance—an unfortunate combination of high inflation, low growth, and a deteriorating current account deficit seem to confirm this view.

• Item Type: MPRA Paper
• Language: English
• Keywords: Brazil; Trade Policy; Industrial Policy; Latin America
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O25 - Industrial Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean

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