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Brazil’s economic growth strategy: the last two decades (1999-2019)

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  • Gomes, Luiz

Abstract

In this work we aim to analyze Brazil’s economic growth strategy in the last two decades. Following the works of Bresser-Pereira (2002) and Bresser-Pereira & Nakano (2003), we refer to this strategy as the “growth strategy with foreign savings”. Based on the so-called Keynesian-structuralist theoretical framework, in this article the argument is that growth with foreign savings reinforces the trend of currency appreciation and increases the country’s external vulnerability. Combined with the “Dutch disease”, this growth strategy produces a picture which final outcome is characterized by the strengthening of such processes as de-industrialization and re-primarization of the exports. Because, in general, it promotes consumption and not productive investment, this strategy also results in substitution of foreign for domestic savings and loss of competitiveness of the domestic industry, further strengthening the external imbalance.

Suggested Citation

  • Gomes, Luiz, 2020. "Brazil’s economic growth strategy: the last two decades (1999-2019)," MPRA Paper 104874, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104874
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    References listed on IDEAS

    as
    1. Marcos Rocha & Nelson Marconi, 2013. "Substituição de Poupança Interna por Externa e Sobreapreciações da Taxa de Câmbio," Discussion Papers 1870, Instituto de Pesquisa Econômica Aplicada - IPEA.
    2. repec:wbk:wbpubs:23969 is not listed on IDEAS
    3. Emanuel Kohlscheen, 2014. "Long‐Run Determinants Of The Brazilian Real: A Closer Look At Commodities," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 19(4), pages 239-250, October.
    4. Luiz Carlos Bresser-Pereira, 2002. "Brazil's Quasi-Stagnation and the Growth cum Foreign Savings Strategy," International Journal of Political Economy, Taylor & Francis Journals, vol. 32(4), pages 76-102.
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    Cited by:

    1. Jaeho Jung & Kisu Kwon, 2025. "Policy or Circumstances? A Synthetic Control Method for Evaluating Brazil’s Economic Boom Under Lula," Economies, MDPI, vol. 13(7), pages 1-17, July.

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    More about this item

    Keywords

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    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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