Is Search of the Chains That Hold Brazil Back

Ricardo Hausmann

Working Paper Series from Harvard University, John F. Kennedy School of Government

Abstract: This paper performs a Growth Diagnostic for Brazil. It shows that many aspects of the Brazilian economy have been improving including the macro picture, educational progress and the external front. Moreover, Brazil has many productive possibilities and high-return investments. Yet growth is hampered because of a relatively old-fashioned problem that has been solved in many other countries in the region: creating a financially viable state that does not over-borrow, over-tax or under-invest. We show that domestic saving is the binding constraint on growth and that it has a fiscal cause. Although things are trending in the right direction, the challenge is to exploit the current good times to create the fiscal basis for a sustained growth acceleration.

JEL-codes: O54 (search for similar items in EconPapers)
Date: 2008-10
New Economics Papers: this item is included in nep-dev and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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https://research.hks.harvard.edu/publications/work ... ?PubId=5982&type=WPN

Related works:
Working Paper: In Search of the Chains that Hold Brazil Back (2008)
Working Paper: In Search of the Chains that Hold Brazil Back (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ecl:harjfk:rwp08-061

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