Vol. 36 No. 4 (2016): Oct-Dec / 2016

Vol. 36 No. 4 (2016)

Oct-Dec / 2016
Published October 1, 2016


Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility
Marwil Dávila-Fernández, José Luis Oreiro
Brazilian Journal of Political Economy

The paper discusses the hypothesis that the functional distribution of income is not necessary stable along the growth path of a capitalist economy. We reviewed Pasinetti and Foley models showing that if we use the traditional definition of capital, i.e. capital as the value of productive resources (i) r>g is a necessary condition for the existence of balanced growth, and it will not lead to an explosive process of income concentration and (ii) r>i is a necessary condition for a financially robust growth path. Thus we conclude that from a post- Keynesian perspective, Piketty's argument that the root of the increase of inequality in capitalism is that the capital return rate is higher than the growth rate of the economy is wrong.

JEL Classification: E11; E12; E25.

Critical notes on Thomas Pikettys The Capital in the XXI Century
Rosa Maria Marques, Marcel Guedes Leite
Brazilian Journal of Political Economy

This article aims to analyze some aspects of the latest book by Thomas Piketty, "Capital in the Twenty-First Century" from a Marxist point of view. The relationships that underlie his long-term analysis of the unequal distribution of income and wealth are addressed, his concepts of capital and long-term, as well as his interpretation of Marx's thought. The article also raised some problems in his database. The analysis takes as its starting point the critic ism made by some renowned Marxist authors such as Michel Husson, David Harvey and Yanis Varoufakis, as well as Robert Boyer. Among the conclusions, it is highlighted the fact that Piketty’s study is the ortically poorly grounded. 

JEL Classification: B51; O15; P16.

Exchange rate misalignment, exchange rate volatility and economic growth: an analysis for the Brazilian economy
Flávio Vilela Vieira, Aderbal Oliveira Damasceno
Brazilian Journal of Political Economy

The goal of this work is to investigate the relevance of exchange rate misalignment and volatility for the Brazilian growth rate for the period of 1995 to 2011. The evidence suggest: i) the exchange rate misalignment is relevant to explain economic growth for the Brazilian economy and exchange rate under depreciation (over appreciation) foster (mitigates) economic growth; ii) exchange rate volatility is relevant to explain economic growth for the Brazilian economy and higher (lower) exchange rate volatility mitigates (foster) economic growth; iii) changes in the investment rate and the growth rate of exports have positive estimated coefficients for the growth model. As a recommendation policy, the suggestion is to keep the real exchange rate at a competitive level with low volatility. 

JEL Classification: O40; F31; C26.

Exchange rate as economic development device
Lauro Mattei, Thaís Scaramuzzi
Brazilian Journal of Political Economy

This article discusses the importance of the exchange rate in the economic development process. After a brief discussion about this issue, the paper presents a historical vision of the exchange policy adopted in Brazil from 1995 until now. This policy took part in the stabilization macroeconomic program implemented in the country since then. Thus, we are discussing the main effects of the economic exchange policy over the industrial sector, highlighting the fact that there are some empirical evidences about the deindustrialization process in Brazil nowadays. What could explain it is the behavior of the share of technological content of the products that compose the international trade of the country. Recently one can observe that there is an expressive growth in the share of the non-industrial products, which could characterize the deindustrialization process in the country.

JEL Classification: O14; O24; O25.

National innovation system and external constraint on growth
Marco Flávio da Cunha Resende, Daniela Almeida Raposo Torres
Brazilian Journal of Political Economy

According to the literature on export-led growth models differences in income elasticities of demand for imports and exports among countries bring about different degrees of external constraint on growth. However, there is not in this literature an explanation that uses the Evolutionary concept of National Innovation System (NIS) that shows why there are differences in income elasticities among countries. Moreover, there is not a consensus about the exogenicity of the elasticities. Some authors highlight the high level of income elasticity of demand for exports in sectors with high level of technological intensity. However these authors seem to not explain the motive for this. The aim of this paper is to theoretically show the causal relation between an economy’s NIS, its income elasticities and its Current Account performance. It also aims to show the role of NIS in the exogeinicity/endogeinicity of the income elasticities. Empirical evidence and a Granger Causality Test are presented and do not reject the core argument of the paper.

JEL Classification: E12; F43; O44.

The role of transnational corporations in the international insertion of Brazilian manufactures in the context of productive restructuring
Adriano José Pereira, Ricardo Dathein
Brazilian Journal of Political Economy

This study analyzes the influence of the international trade pattern of Transnational Corporations (TNCs) on the international ion of Brazilian manufacturingindustry between 1995 and 2005, based on data of the Census of Foreign Capitals of theCentral Bank of Brazil. The work aims toinvestigatetowhat extent increased international ion of TNCs in national economies has contributed to the evolution of Brazilian manufactures in terms of international trade. It has been concluded that the significant participation of TNCs in Brazilian foreign trade reveals that the international ion of the country’s industrial output presents an increasing dependency on strategic decisions of TNCs.

JEL Classification: F14; L10; O14.

Economic raptures, political legitimacy: an analysis of 1987 foreign debt moratorium
Ivan Salomão, Pedro Cezar Dutra Fonseca
Brazilian Journal of Political Economy

The historical context in which José Sarney assumed the presidency accounted for one of the main reasons for their weakness when he assumed the government. Housed in the historic moment of the decline of the military regime, the president-elect in opposition plate reaped the hostility of the streets and the indifference of the political establishmet. Knowing he could not count on the support of the political class nor the Brazilian society, Sarney tried to make the economic measures of broad popular impact his primary vehicle for legitimacy. After collapsing the Cruzado Plan, the president tried to make the negotiation of external debt his main political banner. He has sought, through the boastful tone in which he involved it, raise the internal support they so desperately needed.

JEL Classification: F34.

The new developmentalism: an institutional contribution
Herton Castiglioni Lopes
Brazilian Journal of Political Economy

The objective of this work is analyzing the New Developmentalism throughout the French Regulation School, Veblen’s institutionalism and the Neo-Schumpeterian Approach. It aims to demonstrate, also, that the New Developmentalism is an institution when it establishes a regulation (institutional forms) that considers the structural characteristics of the developing countries. This macroeconomic configuration, together with the mental habits of the agents should strengthen the market relation, the productive investment, the innovation and the technical progress. This last one should happen through open opportunities in technological revolution, to let the ‘catching up’ of the nation less developed.

JEL Classification: E02; O11; O43; B52.

Local multiplier of industrial employment: Brazilian mesoregions (2000-2010)
Guilherme Macedo, Leonardo Monasterio
Brazilian Journal of Political Economy

This paper estimates the local multiplier of manufacturing for Brazil (2000-2010). The method is based on Moretti (2010) and on Moretti and Thulin (2012), who estimated these multipliers for the U.S. and Sweden. The local multiplier of manufacturing estimates the impacts of employment changes in the industrial sectors on employment in the services sectors, and the impact of changes in employment in the high-tech and low-tech tradable sectors on employment in the services sectors. These estimates help to assess the importance of industrial employment changes over local economies. We created instrumental variables, based on the shift-share method. The employment data cover 21 economic subsectors and 123 regions in 2000, 2005 and 2010. We have estimated that in the Brazilian mesorregions, for each new job in the tradable sectors, almost four jobs were created locally in the services sectors. Additionally, each job in the high-tech industrial sectors was estimated to create approximately seven jobs in the services sectors over the long term.

JEL Classification: J21; J88; R12; R23.

Transport infrastructure investment and regional inequalities in Brazil: an Analysis of the impacts of the Growth Acceleration Program (PAC)
Guilherme Jonas Costa da Silva, Humberto Eduardo de Paula Martins, Henrique Dantas Neder
Brazilian Journal of Political Economy

The article analyses the effects of investments in infrastructure – in particular regarding transport sector carried out under the Growth Acceleration Program (PAC) – on the Brazilian regional dynamics.The hypotheses investigated in the study are: (i) infrastructure investments have contributed to the economic growth of the Brazilian states; (ii) PAC’s infrastructure investments have helped to increase the economic growth rates of the Brazilian states, (iii) PAC’s infrastructure investments have changed the dispersion of economic growth rates between states, in favor of poorer states. We employ the methodology of panel data for the estimates and Bootstrapping for predictions. The empirical results only confirmed the first hypotheses, but not the last two ones, indicating that the PAC has not contributed significantly to amplify the average rate of growth of GDP per capita at state level; and also that PAC has not contributed to reduce regional inequalities. 

JEL Classification: H54; O40; C53.