Brazil and the Middle-Income Trap: Its Historical Roots

Seoul Journal of Economics 2019, Vol. 32, No. 1

40 Pages Posted: 21 Mar 2019

Date Written: February 28, 2019

Abstract

This paper evaluates the alternation between catching up periods and falling behind periods in Brazilian economic history, with data from 1870 to 2016. This alternation expresses the middle income trap. A tentative theoretical framework is presented, suggesting a two-dimensional process, with external forces (basically technological revolutions in leading countries) increasing the gap between Brazil and the leading economy, and internal forces (basically planned or unplanned internal efforts, especially industrial policies) reducing that gap. The historical origins of this long term middle income trap is discussed, with a special focus in the role of income inequality.

Keywords: Underdevelopment, Development, Middle Income Trap, Catching Up, Falling Behind

JEL Classification: O1, O43, N16

Suggested Citation

Albuquerque, Eduardo da Motta e, Brazil and the Middle-Income Trap: Its Historical Roots (February 28, 2019). Seoul Journal of Economics 2019, Vol. 32, No. 1, Available at SSRN: https://ssrn.com/abstract=3344135

Eduardo da Motta e Albuquerque (Contact Author)

Universidade Federal de Minas Gerais ( email )

FACE/Cedeplar
Av. Antonio Carlos 6627
Belo Horizonte, Minas Gerais 31270-901
Brazil
55-31-34097076 (Phone)
55-31-34097203 (Fax)

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