Structural Reform Priorities for Brazil
23 Pages Posted: 15 Nov 2018
Date Written: October 2018
Over the last few decades, Brazil has experienced relatively weak economicgrowth due to stagnant productivity. To boost productivity, Brazil shouldembark on an ambitious structural reform process. In doing so, it is crucial thatauthorities select a few reform priorities to avoid dispersing political capital onan overly broad reform agenda. The paper aims to identify Brazil's reformpriorities in two steps. First, it estimates the impact that different reforms haveon Brazil's productivity. Second, it analyzes survey data to assess the extent ofpublic support for reforms. The results show that banking sector reforms wouldgenerate the largest productivity gains and have the highest level of publicsupport. Moreover, they would also be relatively easy to legislate and generatesignificant fiscal savings.
Keywords: Productivity, Product markets, Banking sector, Fiscal reforms, Labor market reforms, Structural reforms, Brazil, political economy
JEL Classification: E02, E60, C83
Suggested Citation: Suggested Citation