Income distribution and economic growth regime in Brazil: evaluation and propositions

Vol. 42 No. 1 (2022)

Jan-Mar / 2022
Published January 20, 2022
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Azevedo, Laís Fernanda de, Pedro Cezar Dutra Fonseca, and Fabricio J. Missio. 2022. “Income Distribution and Economic Growth Regime in Brazil: Evaluation and Propositions”. Brazilian Journal of Political Economy 42 (1):25-47. https://doi.org/10.1590/0101-31572021-3244.

Income distribution and economic growth regime in Brazil: evaluation and propositions

Laís Fernanda de Azevedo
Professora Efetiva da Universidade Estadual de Mato Grosso do Sul (UEMS), Dourados, Mato Grosso do Sul – MS, Brasil.
Pedro Cezar Dutra Fonseca
Professor Titular do Departamento de Economia e Relações Internacionais e do Programa de Pós- -Graduação de Economia da Universidade Federal do Rio Grande do Sul (UFRGS), Porto Alegre – RS, Brasil. Pesquisador CNPQ.
Fabricio J. Missio
Professor Adjunto do Centro de Desenvolvimento e Planejamento Regional, Universidade Federal de Minas Gerais – CEDEPLAR/UFMG, Belo Horizonte – MG, Brasil.
Brazilian Journal of Political Economy, Vol. 42 No. 1 (2022), Jan-Mar / 2022, Pages 25-47

Abstract

The aim of the article is to empirically analyze the economic growth regimes in
Brazil from 2000 to 2015. In theoretical terms, we follow the augmented neo-Kaleckian
model proposed by Palley (2016). Therefore, we incorporate in the analysis the role of the
personal and functional distribution of income. In empirical terms, we use a vector
autoregressive model. The results suggest that the growth regime of the Brazilian economy
was wage-led. This means that capital accumulation and aggregate demand were favored by
policies to reduce inequality in the labor market and personal income. Based on the results, we discussed the Brazilian model, arguing in favor of adopting a growth model that can
reconcile income distribution and export incentive policies.

JEL Classification: C22; D31; D33; E25. 


Keywords: Growth regime income distribution and economic growth in Brazil