Revisiting Growth of Brazilian Economy (1980-2012)


  • José Luis Oreiro Economics Department, University of Brasilia
  • Luciano Manarin D'Agostini Instituto Federal do Amazonas
  • Fabrício Vieira Universidade Federal de Viçosa
  • Luciano Carvalho Universidade Federal de Viçosa



structural change, capital accumulation, semi-stagnation, Brazil


The objective of this article is to analyze the causes of growth deceleration in the Brazilian economy initiated in the mid-1980s from a Keynesian-Structuralist perspective, according to which long-term growth is associated with structural change and capital accumulation. The article will analyze the period from 1980 to 2012 and will test the hypothesis that growth slowdown was caused by a large reduction in the rate of capital accumulation, due to a substantial reduction of the investment share in real output that begun in the 1980s and increased in the 1990s. The reduction of the investment share was the result of the existing imbalances of macroeconomic prices (mainly overvalued real exchange rate and exchange rate/wage ratio) which caused a premature deindustrialization of the Brazilian economy, with negative effects on investment opportunities. The obtained econometric results demonstrate the theoretical hypothesis regarding growth deceleration of the Brazilian economy.

JEL codes: O1, O11, O14

Author Biographies

José Luis Oreiro, Economics Department, University of Brasilia

Associante Professor at Economics Department, University of Brasília

Luciano Manarin D'Agostini, Instituto Federal do Amazonas

Associate Professor

Fabrício Vieira, Universidade Federal de Viçosa

Associate Professor at Economics Department

Luciano Carvalho, Universidade Federal de Viçosa

Associate Professor at Economics Department


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How to Cite

Oreiro, J. L., D'Agostini, L. M., Vieira, F., & Carvalho, L. (2018). Revisiting Growth of Brazilian Economy (1980-2012). PSL Quarterly Review, 71(285), 203–229.