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In this groundbreaking new study, Clements assesses the impact of alternative foreign trade strategies--export promotion and import substitution--on employment and income distribution in Brazil. The first work to evaluate specifically the impact of Brazil's foreign trade policies on income distribution, this volume uses a modified input-output technique to assess income distribution questions.
Brazil is at crossroads, emerging slowly from a historic recession that was preceded by a huge economic boom. Reasons for the historic bust following a boom are manifold. Policy mistakes were an important contributory factor, and included the pursuit of countercyclical policies, introduced to deal with the effects of the global financial crisis, beyond the point where they were helpful. More fundamentally, it reflects longstanding structural weaknesses plaguing the economy, that also help explain Brazil’s uninspiring growth performance over the past four decades.