Structural Change and the Service Sector in Brazil

Marcio José Vargas Cruz, Gabriel Porcile, Luciano Nakabashi () and Fábio Scatolin
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Fábio Scatolin: Department of Economics, Universidade Federal do Paraná

No 75, Working Papers from Universidade Federal do Paraná, Department of Economics

Abstract: A key question with a long tradition in development economics is which patterns of structural change are more conducive for economic growth and convergence in the international economy. Although some studies show that industry has been loosing ground in the Brazilian economy (both in terms of employment and value added), there are few studies discussing how this process affects the performance of the Brazilian economy. Evidence regarding the quality of the jobs created in other sectors is yet scarce. Both topics are addressed in this paper. It is suggested that that the Brazilian deindustrialization process is not a virtuous one, i.e. it is not the result of a dynamic response to long run trends in technology and demand. On the contrary, most jobs are generated in low-productivity activities in the service sector.

Keywords: Economic Growth, Structural Change; Service Sector; Industry; Brazilian Economy. (search for similar items in EconPapers)
JEL-codes: L60 L80 O14 (search for similar items in EconPapers)
Date: 2008
Note: Creation Date corresponds to the year in which the paper was published on the Department of Economics website. The paper may have been written a small number of months before its publication date.

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Persistent link: http://EconPapers.repec.org/RePEc:fup:wpaper:0075

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