COVID-19 and the Brazilian manufacturing sector: Roads to reindustrialization within societal purposes

Esther Dweck, Marilia Bassetti Marcato, Julia Torracca and Thiago Miguez

Structural Change and Economic Dynamics, 2022, vol. 61, issue C, 278-293

Abstract: The COVID-19 crisis represents a turning point to rethink industrial policy spaces and countries’ productive autonomy, especially for developing economies, such as Brazil, that call for new ways of thinking about manufacturing within societal purposes. Using an input-output model, the paper explores the pandemic-crisis-effects in the case of the Brazilian manufacturing sector. We find that the pandemic-crisis has harmful effects on the Brazilian productive structure, revealing the dependence on imports of the Brazilian Health System. Reductions in manufacturing gross output and value-added are mainly seen in knowledge-intensive subsectors, followed by job losses and tax revenue reduction. We suggest that the pandemic points to some roads to reindustrialization and resilience, given the reorganization of international production networks and the growing dependence on imports in key manufacturing sectors. Thus, the potential role of the manufacturing sector to achieve inclusive and sustainable growth reveals the importance of building productive capacity beyond the pandemic.

Keywords: COVID-19; Input-output analysis; Industrial policy; Deindustrialization; Brazilian manufacturing (search for similar items in EconPapers)
JEL-codes: C67 I15 L52 L60 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:61:y:2022:i:c:p:278-293

DOI: 10.1016/j.strueco.2022.02.018

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