The Brazilian Competitiveness Cliff

Brazilian exports of goods and services have grown sharply in recent years, with sales nearly three times higher in 2010 than in 2000. However, Brazil faces considerable competitiveness challenges: its export performance depends mostly on favorable...

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Main Authors:	Canuto, Otaviano, Reis, Jose Guilherme, Cavallari, Matheus
Format:	Brief
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AGGREGATE DEMAND ANNUAL GROWTH ASSET PRICE ASSET PRICE BOOMS ASSET PRICES AUTOMOBILES BILATERAL TRADE BUSINESS ENVIRONMENT CENTRAL BANK COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGES COMPARATIVE ANALYSIS COMPETITIVENESS CONSUMERS CURRENCY CUSTOMS DEBT DEMOGRAPHIC DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIRECT CONNECTION DIVERSIFICATION OF EXPORTS DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMISM ECONOMIC ENVIRONMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIES OF SCALE ELECTRICITY EMERGING MARKET EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATES EXPLOITATION EXPORT COMPETITIVENESS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKETS EXPORT PERFORMANCE EXPORT PERFORMANCES EXPORT SECTOR EXPORT SECTORS EXPORTER EXPORTERS EXPORTS EXTERNAL SHOCK FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL STABILITY POLICY FIXED COSTS FOREIGN COMPETITION FOREIGN TRADE FULL EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL MARKETS GLOBAL SUPPLY CHAIN GLOBAL SUPPLY CHAINS GLOBALIZATION GRAVITY MODEL GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL IMPORT IMPORTS INCOME INCOME GROWTH INDUSTRIAL DEVELOPMENT INDUSTRIAL PRODUCTION INDUSTRIAL STRUCTURE INDUSTRIALIZATION INDUSTRY PRODUCTIVITY INFLATION OBJECTIVE INFLATION RATES INTEREST RATES INTERNATIONAL COMPETITION INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKET INTERNATIONAL TRADE KNOWLEDGE DISSEMINATION LABOR COSTS LABOR PRODUCTIVITY LOSS OF COMPETITIVENESS MANUFACTURING MARKET SHARE MIDDLE-INCOME COUNTRIES MONETARY AUTHORITIES MONETARY POLICY NATURAL CAPITAL NATURAL RESOURCES NETWORKS NEW MARKETS NOMINAL WAGES OIL OPEN ECONOMY OUTPUT PC POLICY MAKERS POVERTY REDUCTION PRIVATE SECTOR PRODUCERS PRODUCTIVITY REAL EFFECTIVE EXCHANGE RATE REAL ESTATE REAL EXCHANGE RATE REAL WAGES RESULT RESULTS SLOWDOWN STABLE GROWTH STABLE INFLATION STANDARDIZATION STOCK MARKET SUNK COSTS SUPPLY SIDE SUPPLY-SIDE TARGETS TAX TAX SYSTEM TECHNOLOGICAL PROGRESS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE COMPETITIVENESS TRADE IMPACTS TRADE INTEGRATION TRADE OPENNESS TRADES TRADING PARTNER TRADING PARTNERS TRANSMISSION UNEMPLOYMENT USES VALUE CHAINS VOLATILITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD MARKET WORLD MARKET SHARE WORLD TRADE
Online Access:	http://documents.worldbank.org/curated/en/2013/02/17235635/brazilian-competitiveness-cliff http://hdl.handle.net/10986/17038

id	okr-10986-17038
recordtype	oai_dc
spelling	okr-10986-170382021-04-23T14:03:33Z The Brazilian Competitiveness Cliff Canuto, Otaviano Reis, Jose Guilherme Cavallari, Matheus AGGREGATE DEMAND ANNUAL GROWTH ASSET PRICE ASSET PRICE BOOMS ASSET PRICES AUTOMOBILES BILATERAL TRADE BUSINESS ENVIRONMENT CENTRAL BANK COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGES COMPARATIVE ANALYSIS COMPETITIVENESS CONSUMERS CURRENCY CUSTOMS DEBT DEMOGRAPHIC DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIRECT CONNECTION DIVERSIFICATION OF EXPORTS DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMISM ECONOMIC ENVIRONMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIES OF SCALE ELECTRICITY EMERGING MARKET EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATES EXPLOITATION EXPORT COMPETITIVENESS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKETS EXPORT PERFORMANCE EXPORT PERFORMANCES EXPORT SECTOR EXPORT SECTORS EXPORTER EXPORTERS EXPORTS EXTERNAL SHOCK FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL STABILITY POLICY FIXED COSTS FOREIGN COMPETITION FOREIGN TRADE FULL EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL MARKETS GLOBAL SUPPLY CHAIN GLOBAL SUPPLY CHAINS GLOBALIZATION GRAVITY MODEL GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL IMPORT IMPORTS INCOME INCOME GROWTH INDUSTRIAL DEVELOPMENT INDUSTRIAL PRODUCTION INDUSTRIAL STRUCTURE INDUSTRIALIZATION INDUSTRY PRODUCTIVITY INFLATION OBJECTIVE INFLATION RATES INTEREST RATES INTERNATIONAL COMPETITION INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKET INTERNATIONAL TRADE KNOWLEDGE DISSEMINATION LABOR COSTS LABOR PRODUCTIVITY LOSS OF COMPETITIVENESS MANUFACTURING MARKET SHARE MIDDLE-INCOME COUNTRIES MONETARY AUTHORITIES MONETARY POLICY NATURAL CAPITAL NATURAL RESOURCES NETWORKS NEW MARKETS NOMINAL WAGES OIL OPEN ECONOMY OUTPUT PC POLICY MAKERS POVERTY REDUCTION PRIVATE SECTOR PRODUCERS PRODUCTIVITY REAL EFFECTIVE EXCHANGE RATE REAL ESTATE REAL EXCHANGE RATE REAL WAGES RESULT RESULTS SLOWDOWN STABLE GROWTH STABLE INFLATION STANDARDIZATION STOCK MARKET SUNK COSTS SUPPLY SIDE SUPPLY-SIDE TARGETS TAX TAX SYSTEM TECHNOLOGICAL PROGRESS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE COMPETITIVENESS TRADE IMPACTS TRADE INTEGRATION TRADE OPENNESS TRADES TRADING PARTNER TRADING PARTNERS TRANSMISSION UNEMPLOYMENT USES VALUE CHAINS VOLATILITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD MARKET WORLD MARKET SHARE WORLD TRADE Brazilian exports of goods and services have grown sharply in recent years, with sales nearly three times higher in 2010 than in 2000. However, Brazil faces considerable competitiveness challenges: its export performance depends mostly on favorable geographical and sector composition effects. Such challenges increased after the recent global economic crisis. A recent slowdown in industrial exports, production, and investments seems related to supply-side difficulties stemming from a wide range of inefficiencies and rising costs, rather than insufficient demand. Although a stronger currency is one of the factors behind the lower competitiveness of Brazil's manufacturing exports, sluggish productivity performance, lack of dynamism at the firm level, and a real wage uptrend seem to explain a significant part of the overall loss of competitiveness. This diagnostic reinforces the urgency of resuming the agenda of microeconomic reforms, increasing the investment-to-Gross Domestic Product (GDP) ratio, and advancing toward better-skilled human capital. 2014-02-12T19:35:02Z 2014-02-12T19:35:02Z 2013-02 http://documents.worldbank.org/curated/en/2013/02/17235635/brazilian-competitiveness-cliff http://hdl.handle.net/10986/17038 English en_US Economic premise;no. 105 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean Brazil
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGGREGATE DEMAND ANNUAL GROWTH ASSET PRICE ASSET PRICE BOOMS ASSET PRICES AUTOMOBILES BILATERAL TRADE BUSINESS ENVIRONMENT CENTRAL BANK COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGES COMPARATIVE ANALYSIS COMPETITIVENESS CONSUMERS CURRENCY CUSTOMS DEBT DEMOGRAPHIC DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIRECT CONNECTION DIVERSIFICATION OF EXPORTS DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMISM ECONOMIC ENVIRONMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIES OF SCALE ELECTRICITY EMERGING MARKET EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATES EXPLOITATION EXPORT COMPETITIVENESS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKETS EXPORT PERFORMANCE EXPORT PERFORMANCES EXPORT SECTOR EXPORT SECTORS EXPORTER EXPORTERS EXPORTS EXTERNAL SHOCK FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL STABILITY POLICY FIXED COSTS FOREIGN COMPETITION FOREIGN TRADE FULL EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL MARKETS GLOBAL SUPPLY CHAIN GLOBAL SUPPLY CHAINS GLOBALIZATION GRAVITY MODEL GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL IMPORT IMPORTS INCOME INCOME GROWTH INDUSTRIAL DEVELOPMENT INDUSTRIAL PRODUCTION INDUSTRIAL STRUCTURE INDUSTRIALIZATION INDUSTRY PRODUCTIVITY INFLATION OBJECTIVE INFLATION RATES INTEREST RATES INTERNATIONAL COMPETITION INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKET INTERNATIONAL TRADE KNOWLEDGE DISSEMINATION LABOR COSTS LABOR PRODUCTIVITY LOSS OF COMPETITIVENESS MANUFACTURING MARKET SHARE MIDDLE-INCOME COUNTRIES MONETARY AUTHORITIES MONETARY POLICY NATURAL CAPITAL NATURAL RESOURCES NETWORKS NEW MARKETS NOMINAL WAGES OIL OPEN ECONOMY OUTPUT PC POLICY MAKERS POVERTY REDUCTION PRIVATE SECTOR PRODUCERS PRODUCTIVITY REAL EFFECTIVE EXCHANGE RATE REAL ESTATE REAL EXCHANGE RATE REAL WAGES RESULT RESULTS SLOWDOWN STABLE GROWTH STABLE INFLATION STANDARDIZATION STOCK MARKET SUNK COSTS SUPPLY SIDE SUPPLY-SIDE TARGETS TAX TAX SYSTEM TECHNOLOGICAL PROGRESS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE COMPETITIVENESS TRADE IMPACTS TRADE INTEGRATION TRADE OPENNESS TRADES TRADING PARTNER TRADING PARTNERS TRANSMISSION UNEMPLOYMENT USES VALUE CHAINS VOLATILITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD MARKET WORLD MARKET SHARE WORLD TRADE
spellingShingle	AGGREGATE DEMAND ANNUAL GROWTH ASSET PRICE ASSET PRICE BOOMS ASSET PRICES AUTOMOBILES BILATERAL TRADE BUSINESS ENVIRONMENT CENTRAL BANK COMMODITIES COMMODITY COMMODITY PRICES COMPARATIVE ADVANTAGES COMPARATIVE ANALYSIS COMPETITIVENESS CONSUMERS CURRENCY CUSTOMS DEBT DEMOGRAPHIC DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIRECT CONNECTION DIVERSIFICATION OF EXPORTS DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC MARKETS ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMISM ECONOMIC ENVIRONMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIES OF SCALE ELECTRICITY EMERGING MARKET EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATES EXPLOITATION EXPORT COMPETITIVENESS EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT MARKETS EXPORT PERFORMANCE EXPORT PERFORMANCES EXPORT SECTOR EXPORT SECTORS EXPORTER EXPORTERS EXPORTS EXTERNAL SHOCK FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL STABILITY POLICY FIXED COSTS FOREIGN COMPETITION FOREIGN TRADE FULL EMPLOYMENT GDP GDP DEFLATOR GDP PER CAPITA GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL MARKETS GLOBAL SUPPLY CHAIN GLOBAL SUPPLY CHAINS GLOBALIZATION GRAVITY MODEL GROSS DOMESTIC PRODUCT GROWTH RATE HUMAN CAPITAL IMPORT IMPORTS INCOME INCOME GROWTH INDUSTRIAL DEVELOPMENT INDUSTRIAL PRODUCTION INDUSTRIAL STRUCTURE INDUSTRIALIZATION INDUSTRY PRODUCTIVITY INFLATION OBJECTIVE INFLATION RATES INTEREST RATES INTERNATIONAL COMPETITION INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKET INTERNATIONAL TRADE KNOWLEDGE DISSEMINATION LABOR COSTS LABOR PRODUCTIVITY LOSS OF COMPETITIVENESS MANUFACTURING MARKET SHARE MIDDLE-INCOME COUNTRIES MONETARY AUTHORITIES MONETARY POLICY NATURAL CAPITAL NATURAL RESOURCES NETWORKS NEW MARKETS NOMINAL WAGES OIL OPEN ECONOMY OUTPUT PC POLICY MAKERS POVERTY REDUCTION PRIVATE SECTOR PRODUCERS PRODUCTIVITY REAL EFFECTIVE EXCHANGE RATE REAL ESTATE REAL EXCHANGE RATE REAL WAGES RESULT RESULTS SLOWDOWN STABLE GROWTH STABLE INFLATION STANDARDIZATION STOCK MARKET SUNK COSTS SUPPLY SIDE SUPPLY-SIDE TARGETS TAX TAX SYSTEM TECHNOLOGICAL PROGRESS TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE COMPETITIVENESS TRADE IMPACTS TRADE INTEGRATION TRADE OPENNESS TRADES TRADING PARTNER TRADING PARTNERS TRANSMISSION UNEMPLOYMENT USES VALUE CHAINS VOLATILITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD MARKET WORLD MARKET SHARE WORLD TRADE Canuto, Otaviano Reis, Jose Guilherme Cavallari, Matheus The Brazilian Competitiveness Cliff
geographic_facet	Latin America & Caribbean Brazil
relation	Economic premise;no. 105
description	Brazilian exports of goods and services have grown sharply in recent years, with sales nearly three times higher in 2010 than in 2000. However, Brazil faces considerable competitiveness challenges: its export performance depends mostly on favorable geographical and sector composition effects. Such challenges increased after the recent global economic crisis. A recent slowdown in industrial exports, production, and investments seems related to supply-side difficulties stemming from a wide range of inefficiencies and rising costs, rather than insufficient demand. Although a stronger currency is one of the factors behind the lower competitiveness of Brazil's manufacturing exports, sluggish productivity performance, lack of dynamism at the firm level, and a real wage uptrend seem to explain a significant part of the overall loss of competitiveness. This diagnostic reinforces the urgency of resuming the agenda of microeconomic reforms, increasing the investment-to-Gross Domestic Product (GDP) ratio, and advancing toward better-skilled human capital.
format	Publications & Research :: Brief
author	Canuto, Otaviano Reis, Jose Guilherme Cavallari, Matheus
author_facet	Canuto, Otaviano Reis, Jose Guilherme Cavallari, Matheus
author_sort	Canuto, Otaviano
title	The Brazilian Competitiveness Cliff
title_short	The Brazilian Competitiveness Cliff
title_full	The Brazilian Competitiveness Cliff
title_fullStr	The Brazilian Competitiveness Cliff
title_full_unstemmed	The Brazilian Competitiveness Cliff
title_sort	brazilian competitiveness cliff
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/02/17235635/brazilian-competitiveness-cliff http://hdl.handle.net/10986/17038
_version_	1764435226205880320

The Brazilian Competitiveness Cliff

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