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COVID-19 and the Brazilian manufacturing sector: Roads to reindustrialization within societal purposes

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  • Dweck, Esther
  • Marcato, Marilia Bassetti
  • Torracca, Julia
  • Miguez, Thiago

Abstract

The COVID-19 crisis represents a turning point to rethink industrial policy spaces and countries’ productive autonomy, especially for developing economies, such as Brazil, that call for new ways of thinking about manufacturing within societal purposes. Using an input-output model, the paper explores the pandemic-crisis-effects in the case of the Brazilian manufacturing sector. We find that the pandemic-crisis has harmful effects on the Brazilian productive structure, revealing the dependence on imports of the Brazilian Health System. Reductions in manufacturing gross output and value-added are mainly seen in knowledge-intensive subsectors, followed by job losses and tax revenue reduction. We suggest that the pandemic points to some roads to reindustrialization and resilience, given the reorganization of international production networks and the growing dependence on imports in key manufacturing sectors. Thus, the potential role of the manufacturing sector to achieve inclusive and sustainable growth reveals the importance of building productive capacity beyond the pandemic.

Suggested Citation

  • Dweck, Esther & Marcato, Marilia Bassetti & Torracca, Julia & Miguez, Thiago, 2022. "COVID-19 and the Brazilian manufacturing sector: Roads to reindustrialization within societal purposes," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 278-293.
    • Handle: RePEc:eee:streco:v:61:y:2022:i:c:p:278-293
    DOI: 10.1016/j.strueco.2022.02.018
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    More about this item

    Keywords

    COVID-19; Input-output analysis; Industrial policy; Deindustrialization; Brazilian manufacturing;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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