ABSTRACT
An increase in productivity is currently a major concern in Brazilian economy. Even though during the 2000s Brazil experienced positive GDP growth rates, the low levels of productivity growth displayed during these years is a sign that something is not working well. With a view to address this issue, the newly adopted Brazilian industrial policy, Brasil Mais Produtivo (More Productive Brazil), focuses on helping MSMEs increase their productivity levels. In addition, the publication of a two-volume book discussing the performance and causes behind Brazilian productivity by the Instituto de Pesquisas Econômicas Aplicadas (IPEA) shows that this issue is becoming a priority in academic debate too. The aim of this chapter is to show how Brazilian labor productivity performed in the 2000–13 period. In order to do that, we have a brief section to discuss some analytical references relating productivity growth to economic and Gross Fixed Capital Formation (GFCF) growth. The third section presents a general overview of the Brazilian economy and the labor productivity for the entire economy. The fourth section shows the numbers for Brazilian labor productivity, in a sectoral perspective, although by sectoral we mean ‘Agriculture’, ‘Mining and Quarrying’ and ‘Manufacturing’. The fifth section brings a shift-share analysis aiming to understand which factors may explain the low evolution of Brazilian labor productivity. In the last section are the conclusions.
