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Sectoral deindustrialization and long-run stagnation of Brazilian manufacturing

Author

Listed:
  • Paulo César Morceiro
  • Joaquim José Martins Guilhoto

Abstract

In Brazil and elsewhere in the world, diagnoses of deindustrialization areconcentrated in aggregate manufacturing, so policies can be ineffective if deindustrializationhas a sector-specific component. This study quantifies and analyses deindustrializationfor the individualised manufacturing sub-sectors. To do this, unpublished series of themanufacturing sub-sectors’ share in the Brazilian GDP from 1970 to 2016 were created,based on official IBGE data. The results show that the manufacturing sub-sectors have deindustrialised at different intensities and periods of aggregate manufacturing, and a subsectoralapproach reveals traces ignored by the literature on the quality of deindustrialization.We conclude that the Brazilian deindustrialization is normal (and expected) for the labourintensivemanufacturing sub-sectors, but premature (and undesirable) for the technologyintensivesub-sectors. Therefore, Brazilian deindustrialization has negative consequences forthe country’s future scientific and technological development. JEL Classification: O14; L6; L16.

Suggested Citation

  • Paulo César Morceiro & Joaquim José Martins Guilhoto, 2023. "Sectoral deindustrialization and long-run stagnation of Brazilian manufacturing," Brazilian Journal of Political Economy, Center of Political Economy, vol. 43(2), pages 418-441.
    • Handle: RePEc:ekm:repojs:v:43:y:2023:i:2:p:418-441:id:2405
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    More about this item

    Keywords

    Sectoral deindustrialization; industrial development; sectoral heterogeneity; structural change;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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