How the Pre-Salt Layer Can Help Brazil Enter a New Era of Economic Growth

12 Pages Posted: 3 May 2013 Last revised: 3 Jan 2015

See all articles by Jorge Arbache

Jorge Arbache

University of Brasilia - Department of Economics

Fernando Arbache

Professor of Logistics at HSM; Developer of Business Game - Arbache Games; Professor of Logistic at FGV; Professor of Business Game at FDC

Date Written: May 1, 2013

Abstract

It has taken decades for Brazil to build a dynamic and integrated industrial sector that has helped it to grow and become one of the largest economies in the world. More recently, however, its manufacturing sector has shown signs of losing momentum. In fact, basic indicators, such as output, exports and employment, show that industry is growing more slowly than other sectors and is falling behind. At a time when the manufacturing sector is losing ground and the economy is concentrating on the production and exports of basic commodities, the world is experiencing a profound transition toward a new geography of production and innovation that is already redesigning the global economy. How does Brazil feature in the new economic geography? Does Brazil have opportunities for investments in innovation and increase productivity and competitiveness, so that it can compete globally and participate in global high value added chains? The aim of this paper is to shed some light on these issues. In particular, it explores the case of the pre-salt layer project, the one that has all the characteristics and potential to become the most promising frontier for technological and industrial development and become a gateway to the new geography of production and innovation.

Keywords: energy, pre-salt layer, innovation, technology, manufacturing sector, Brazil

JEL Classification: O3, O4

Suggested Citation

Arbache, Jorge and Arbache, Fernando, How the Pre-Salt Layer Can Help Brazil Enter a New Era of Economic Growth (May 1, 2013). Available at SSRN: https://ssrn.com/abstract=2259192 or http://dx.doi.org/10.2139/ssrn.2259192

Jorge Arbache (Contact Author)

University of Brasilia - Department of Economics ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil
+ 55 61 8194 4529 (Phone)

Fernando Arbache

Professor of Logistics at HSM; Developer of Business Game - Arbache Games ( email )

São Paulo
Brazil
+551150960635 (Phone)

HOME PAGE: http://www.arbache.com

Professor of Logistic at FGV ( email )

R. Dr. Neto de Araujo 320 cj 1307
Rio de Janeiro, Rio de Janeiro 22250-900
Brazil

Professor of Business Game at FDC ( email )

Avenida Princesa Diana 760, Alphaville
Nova Lima, 34000000
Brazil

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