Brazil's Long-Term Growth Performance - Trying to Explain the Puzzle

23 Pages Posted: 12 Jan 2007

See all articles by Ricardo Adrogue

Ricardo Adrogue

Wellington Management Company

Martin D. Cerisola

International Monetary Fund (IMF)

Gaston Gelos

Bank for International Settlements; Centre for Economic Policy Research (CEPR)

Date Written: Janurary 2007

Abstract

This paper assesses Brazil's growth performance from a long-term perspective, using crosscountry and panel estimation techniques, building on the vast empirical literature on growth. The empirical evidence presented in this paper 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. 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.

Keywords: Economic growth, Brazil, Economic stabilization, Economic reforms, Economic models

JEL Classification: C31, C33, E60, O40, O50, O57

Suggested Citation

Adrogue, Ricardo and Cerisola, Martin D. and Gelos, R. Gaston, Brazil's Long-Term Growth Performance - Trying to Explain the Puzzle (Janurary 2007). IMF Working Paper No. 06/282, Available at SSRN: https://ssrn.com/abstract=956745

Ricardo Adrogue

Wellington Management Company ( email )

United States

Martin D. Cerisola (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

R. Gaston Gelos

Bank for International Settlements ( email )

Centralbankplatz 2
Basel, 4002
Switzerland
0612808201 (Phone)

HOME PAGE: http://https://www.bis.org/author/gaston_gelos.htm

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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