Brazilian Journal of Political Economy, Volume: 33, Issue: 1, Published: 2013
  • Germany's socio-economic model and the Euro crisis

    Dauderstädt, Michael

    Abstract in English:

    Germany's socio-economic model, the "social market economy", was established in West Germany after World War II and extended to the unified Germany in 1990. During a prolonged recession after the adoption of the Euro in 1998, major reforms (Agenda 2010) were introduced which many consider as the key of Germany's recent success. The reforms had mixed results: employment increased but has consisted to a large extent of precarious low-wage jobs. Growth depended on export surpluses based on an internal real devaluation (low unit labour costs) which make Germany vulnerable to global recessions as in 2009. Overall inequality increased substantially.
  • Competitiveness and external constraint in the Eurozone

    Diniz, André Sander; Jayme Jr., Frederico G.

    Abstract in English:

    The recent debt crisis in Greece, Ireland and Portugal has exposed the fragility existing in the Eurozone for promoting development and economic convergence between the countries that have adopted the currency. Way beyond the fear of insolvency, what is observed is a growing disparity of the most-developed countries in comparison to the less-developed ones, with perverse consequences for the last ones. Once the nominal exchange rates are fixed, the divergent movements in relative prices and wages between the countries have led to totally distinct paths for the real exchange rates. Worsening the scenario, one can observe the incompleteness of the political union, the monetarist focus of the ECB and the lack of labor mobility between the countries, what distances from the argument stated by the theory and puts in jeopardize the future of the Monetary Union.
  • Origin and agenda of Brazilian new developmentalism

    Mattei, Lauro

    Abstract in English:

    The debate regarding Brazil's development model returned again to the public arena in the first decade of 21st century after two decades of orthodox economic policies which encouraged non-developed countries to adopt liberal economic policies as their preferred growth strategies. As Brazil achieved neither economic stability nor development, the discussion of new development strategies returned as a popular research topic. It is in this context that a new development theory - New Developmentalism - emerges. The objective of this article is to review the origins of this debate and the main propositions defended by the group aiming to implement a new development model policy in the country. The main conclusions are that this group has had an important contribution in maintaining the development debate in the public agenda as well as proposing a new theoretical approach called "structuralist macroeconomic development".
  • Real exchange rate and external constraint

    Ferrari, Marcos Adolfo Ribeiro; Freitas, Fábio Neves P.; Barbosa Filho, Nelson

    Abstract in English:

    This paper investigates a topic of the agenda about growth models, emphasizing the elaboration of an external constrained model with endogenous elasticity, with an emphasis on real exchange rate level as main tool for the economic development. The model is anchored in Kaldor, Thirlwall and Barbosa Filho's models and it will demonstrate that external constraint changes in the course of time.
  • Exchange rate, exports and growth: an investigation on the hypothesis of Dutch disease in Brazil

    Veríssimo, Michele Polline; Xavier, Clésio Lourenço

    Abstract in English:

    This paper investigates the hypothesis of Dutch disease in Brazil by the existence of a negative relationship between commodity exports and the real exchange rate, and the effects of export specialization in commodities on the Brazilian economic growth from 1999 to 2010 based on VAR model. The evidences suggested an expressive importance of commodities exports in explaining the real exchange rate changes. Moreover, commodities exports shocks were relevant to explain Brazilian economic growth rate changes, which supports the "curse" of natural resources literature.
  • Brazilian, Chinese, and Indian exports: is the regional market really a source of learning?

    Baumann, Renato

    Abstract in English:

    In some Latin American countries the exporting activity starts at a regional level, with producers only later venturing into more competitive markets. The implicit risk is that a country might never progress from the regional stage to a more global market. This article compares the experiences of Brazil, China and India. It is shown that Brazil relied on the regional market far more intensely than these Asian countries. There were clear gains accruing to China and India for having exploited more sophisticated markets from the very beginning of their export drive.
  • Exports and innovation: an analysis for Latin America and South-Southeast Asia

    Nonnenberg, Marcelo José Braga

    Abstract in English:

    The purpose of this study is to compare the performance of Latin America and South-Southeast Asia countries over the past three decades with respect to technological intensity of their exports. The main contribution of this paper is to construct an indicator of technological intensity to allow adequate measurement of the degree of knowledge content of exports from both regions. This indicator was calculated for all sample countries for the period 1983-2008, based on data from Comtrade/WITS and clearly show how Asian countries have a technological intensity of their exports much higher than the Latin American countries.
  • Education and development projects in Brazil (1932-2004): political economy perspective

    Wjuniski, Bernardo Stuhlberger

    Abstract in English:

    This paper discusses the long-run history of education policies in Brazil. It is suggested that the main reason for the educational backwardness was the existence of strong political interests over education. It is also defended that these interests can be empirically observed in the allocation of public resources between the different levels of education, with political choices favouring specific groups in society. It was not a matter of lack of investment in education, but of inadequate allocation of resources. This pattern of political-based policies created a strong negative path dependence of misallocation of resources in education in Brazil, particularly with significant underinvestment in secondary education.
  • Mobilidade intrageracional de rendimentos no Brasil

    Antigo, Mariangela Furlan; Machado, Ana Flávia

    Abstract in English:

    This work investigates the earnings mobility in Brazil, considering the period before and after the observed fall of inequality in the country. We used microdata from Monthly Employment Survey (PME/IBGE), from 1992 to 2009. It is possible to analyze mobility in an intra generational context. The mobility contributes to decrease income inequality. Given the fall of inequality in the country, if mobility persists, Brazil may experience, in the long run, greater income convergence.
  • Minimum wages, poverty alleviation income policies, and the relative performance of the Northeastern economy in Brazil

    Barros, Alexandre Rands; Athias, Diloá

    Abstract in English:

    This paper presents the two major hypotheses explaining the relatively higher GDP growth of Northeast, when compared to the one for the whole country. These hypotheses are that governmental transferences towards the poorest and the rises in minimum wages are responsible for such relative performance. They are formally presented theoretically and a method to test their relative role is developed, relying on county data for the period 2000 to 2006. The results indicate that the Bolsa Familia Program had a higher positive impact in the GDP growth rate of the region than the rises in Minimum wage.
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