Structural Reform Priorities for Brazil

23 Pages Posted: 15 Nov 2018

See all articles by Nina Biljanovska

Nina Biljanovska

International Monetary Fund (IMF)

Damiano Sandri

International Monetary Fund (IMF) - Research Department

Date Written: October 2018

Abstract

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

Biljanovska, Nina and Sandri, Damiano, Structural Reform Priorities for Brazil (October 2018). IMF Working Paper No. 18/224, Available at SSRN: https://ssrn.com/abstract=3285222

Nina Biljanovska (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Damiano Sandri

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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