The new neoclassical theory of growth and the problem of Brazilian economic underdevelopment

Vol. 18 No. 2 (1998)

Apr-Jun / 1998
Published April 1, 1998
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bueno, Newton Paulo. 1998. “The New Neoclassical Theory of Growth and the Problem of Brazilian Economic Underdevelopment”. Brazilian Journal of Political Economy 18 (2):213-28. https://doi.org/10.1590/0101-31571998-1264.

The new neoclassical theory of growth and the problem of Brazilian economic underdevelopment

Newton Paulo Bueno
Do Departamento de Economia da Universidade Federal de Viçosa – UFV, Viçosa/MG, Brasil.
Brazilian Journal of Political Economy, Vol. 18 No. 2 (1998), Apr-Jun / 1998, Pages 213-228

Abstract

The purpose of the paper is to show that endogenous growth theory is at best insufficient
to explain Brazilian economic underdevelopment. The main reason for this is that
this theory gives a major importance to the role of human capital in the process of economic
growth which is not justifiable in the Brazilian case. Instead of this, the main problem of the
Brazilian economy seems to be the incapacity of its modem sector to absorb the majority
of the population. This cannot be done only through human capital increase; it requires in
first place a major physical investment program in order to enlarge the size of the modem
sector nowadays opened only to a minority of the population which is insufficient to allow
Brazilian economy recovery.

JEL Classification: J20; J24; B50.


Keywords: Endogenous growth model human capital employment determination