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Taxation and the stagnation of cotton exports in Brazil, 1800–60

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  • Thales Zamberlan Pereira

Abstract

Brazil's northern region supplied 40 per cent of the cotton imported into Liverpool during the last decade of the eighteenth century. In the following decades, however, cotton exports stagnated, and Brazil became the only major international cotton producer that decreased its exports to European countries. This article shows that the fiscal policies of Brazil's central government had a significant role on the decline of cotton exports. The central government set export taxes to maximize revenue from higher‐quality long‐staple cotton, decreasing the profitability of short staples, which saw the largest increase in demand during the nineteenth century.

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  • Thales Zamberlan Pereira, 2021. "Taxation and the stagnation of cotton exports in Brazil, 1800–60," Economic History Review, Economic History Society, vol. 74(2), pages 522-545, May.
    • Handle: RePEc:bla:ehsrev:v:74:y:2021:i:2:p:522-545
    DOI: 10.1111/ehr.13028
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    References listed on IDEAS

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