Brazil's long-term growth performance: trying to explain the puzzle
AbstractPurpose – This paper seeks to assess Brazil's growth performance from a long-term perspective. Brazil's growth performance over the past 25 years has been lackluster, and various hypotheses have been advanced to explain Brazil's disappointing growth record. Design/methodology/approach – In contrast with the existing literature, the paper uses cross-country and panel estimation techniques to analyze Brazil's growth record, building on the vast empirical literature on growth and its long-term determinants. It examines the extent to which fundamental factors found to be related to growth in the cross-section help to explain Brazil's growth performance during 1960-2000. It also explores the dynamics of growth across time by using panel data models to assess the role of various fundamentals that may have influenced Brazil's growth performance since 1960. Findings – The empirical evidence presented confirms that macroeconomic stability and several reforms have helped raise per capita growth in Brazil since the mid-1990s. The results also show that some long-standing structural weaknesses continue to weigh negatively on per capita growth. Practical implications – Reducing the high level of government consumption would help lower the overall consumption level in the economy and lower its intertemporal price – the real interest rate, thus helping to foster investment and growth. Originality/value – The paper provides useful information on Brazil's growth performance from a long-term perspective.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Economic Studies.
Volume (Year): 37 (2010)
Issue (Month): 4 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Other versions of this item:
- Ricardo AdroguÃ© & Martin Cerisola & Gaston Gelos, 2006. "Brazil's Long-Term Growth Performance -Trying to Explain the Puzzle," IMF Working Papers 06/282, International Monetary Fund.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Graciela L. Kaminsky & Carmen M. Reinhart, 1996.
"The twin crises: the causes of banking and balance-of-payments problems,"
International Finance Discussion Papers
544, Board of Governors of the Federal Reserve System (U.S.).
- Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
- Reinhart, Carmen & Kaminsky, Graciela, 1999. "The twin crises: The causes of banking and balance of payments problems," MPRA Paper 14081, University Library of Munich, Germany.
- Caballero, Ricardo J, 1994. "Small Sample Bias and Adjustment Costs," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 52-58, February.
- Nelson H. Barbosa Filho, 2001. "International Liquidity and Growth in Brazil," SCEPA Working Papers 2001-04, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Robert J. Barro, 2003.
"Determinants of Economic Growth in a Panel of Countries,"
Annals of Economics and Finance,
Society for AEF, vol. 4(2), pages 231-274, November.
- Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," CEMA Working Papers 505, China Economics and Management Academy, Central University of Finance and Economics.
- Cole, Harold L. & Ohanian, Lee E. & Riascos, Alvaro & Schmitz, James Jr, 2005.
"Latin America in the rearview mirror,"
Journal of Monetary Economics,
Elsevier, vol. 52(1), pages 69-107, January.
- Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, Jr., 2004. "Latin America in the rearview mirror," Staff Report 351, Federal Reserve Bank of Minneapolis.
- Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, Jr., 2004. "Latin America in the Rearview Mirror," NBER Working Papers 11008, National Bureau of Economic Research, Inc.
- repec:rus:hseeco:70719 is not listed on IDEAS
- Caprio, Gerard Jr. & Klingebiel, Daniela, 1996. "Bank insolvencies : cross-country experience," Policy Research Working Paper Series 1620, The World Bank.
- Norman Loayza & Pablo Fajnzylber & César Calderón, 2005.
"Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts,"
World Bank Publications,
The World Bank, number 7315, March.
- Norman Loayza & Pablo Fajnzylber & César Calderón, 2004. "Economic Growth in Latin America and The Caribbean: Stylized Facts, Explanations, and Forecasts," Working Papers Central Bank of Chile 265, Central Bank of Chile.
- Vladimir Kuhl Teles & Joaquim Andrade, 2008.
"Public investment in basic education and economic growth,"
Journal of Economic Studies,
Emerald Group Publishing, vol. 35(4), pages 352-364, July.
- Teles, Vladimir Kuhl & Andrade, Joaquim Pinto de, 2010. "Public investment in basic education and economic growth," Textos para discussÃ£o 230, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
- Vladimir Kühl Teles & Joaquim P. Andrade, 2004. "Public Investment In Basic Education And Economic Growth," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 040, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Antonio Fatás & Ilian Mihov, 2003.
"The Case For Restricting Fiscal Policy Discretion,"
The Quarterly Journal of Economics,
MIT Press, vol. 118(4), pages 1419-1447, November.
- Vladimir Kühl Teles, 2007. "Institutional quality and endogenous economic growth," Journal of Economic Studies, Emerald Group Publishing, vol. 34(1), pages 29-41, January.
- Gerhard Glomm & Jürgen Jung & Changmin Lee & Chung Tran, 2005. "Public Pensions and Capital Accumulation: The Case of Brazil," CESifo Working Paper Series 1539, CESifo Group Munich.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Dani Rodrik & Andres Velasco, 1999. "Short-Term Capital Flows," NBER Working Papers 7364, National Bureau of Economic Research, Inc.
- Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004.
"Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach,"
American Economic Review,
American Economic Association, vol. 94(4), pages 813-835, September.
- Gernot Doppelhofer & Ronald I. Miller & Xavier Sala-i-Martin, 2000. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," NBER Working Papers 7750, National Bureau of Economic Research, Inc.
- Gernot Doppelhofer & Ronald I. Miller & Xavier Sala-i-Martin, 2000. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (Bace) Approach," OECD Economics Department Working Papers 266, OECD Publishing.
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Florian Pelgrin & Sebastian Schich & Alain de Serres, 2002. "Increases in Business Investment Rates in OECD Countries in the 1990s: How Much Can be Explained by Fundamentals?," OECD Economics Department Working Papers 327, OECD Publishing.
- David L. Lindauer & Lant. Pritchett, 2002. "What's the Big Idea? The Third Generation of Policies for Economic Growth," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Antonio Fat·s & Ilian Mihov, 2003. "On Constraining Fiscal Policy Discretion in EMU," Oxford Review of Economic Policy, Oxford University Press, vol. 19(1), pages 112-131.
- Hausmann, Ricardo, 2008. "Is Search of the Chains That Hold Brazil Back," Working Paper Series rwp08-061, Harvard University, John F. Kennedy School of Government.
- Altug, Sumru G. & Filiztekin, Alpay & Pamuk, Sevket, 2007. "The Sources of Long-term Economic Growth for Turkey, 1880-2005," CEPR Discussion Papers 6463, C.E.P.R. Discussion Papers.
- Jeromin Zettelmeyer, 2006. "Growth and Reforms in Latin America: A Survey of Facts and Arguments," IMF Working Papers 06/210, International Monetary Fund.
- Manoel Bittencourt, 2011. "Is Copacabana Still the ‘Little Princess of the Sea’?," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(1), pages 11-16, 03.
- Bennett Sutton & Genevieve Lindow & Maria Isabel Serra & Gustavo Ramirez & Maria Fernanda Pazmino, 2006. "Regional Convergence in Latin America," IMF Working Papers 06/125, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jade Turvey).
If references are entirely missing, you can add them using this form.